Bond markets everywhere are getting destroyed after the ECB tapers

Bond markets all over the world are getting slaughtered after the European Central Bank announced it would taper extend its quantitative easing program until at least December 2017, but would taper its purchases from 80 billion euros per month to 60 billion euros per month.

Selling is having the biggest impact on Italian yields with the 10-year higher by more than 15 basis points to 2.03%. The tapering of the ECB's bond buying program as reignited worries surrounding the health of the Italian banking system. Monte dei Paschi, the world's oldest bank, is teetering on the brink of default and is currently in talks to be rescued.

And the rest of the bond markets in peripheral Europe are under pressure as well. Portugal and Spain's 10-year yields are up 14 bps and 11 bps apiece to their respective 1.55% and 3.58% as contagion fears take hold.

Even the safety of German bunds has come into question with the 10-year yield up 9 bps at 42 bps. That's the highest it has been since January.

Here in the US, yields are up as much as 6 bps at the long end of the curve, and are approaching their cycle highs. The 10-year yield is flirting with the 2.40% level, and would need to hit 2.45% to put in its highest reading since the middle of 2015.

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