From Zero Hedge:

As both Italian and Spanish bond spreads continue slowly creeping wider toward the half a century territory, we are reminded once again that once both countries pass 450 bps, LCH will automatically hike collateral triggers for both countries... in essence, initiating another waterfall effect whereby less cash is released upon repo, requiring more bonds to be pledged. Thish in turn means other assets have to be sold off to make up for the shortfall, which in turn leads to a sell off of the underlying financial institution, and so on.

What this practically means is that the bond vigilantes now have a far more achievable task in terms of...

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More on the euro crisis:

This could be the "breaking point" for Italy and the euro

Stealth bank runs are spreading across Europe right now

Stop worrying about a debt ceiling default... a far more serious default could be coming here