European Bond Yields 11-28-11

The new trading week begins on the rumor that the IMF is in financing talks with Italy. U.S. futures bounced on the news last night and have ticked stronger despite the IMF denying the rumor.  The Italy 10-year yield is at 7.08%, remaining above the critical 7% level.  Germany 10-year is 2.31%.  Portugal 10-year yield is 13.23%. U.S. 10-year is 2.05%.  The French-German spread is narrowing. Note that Germany 10-year yields have risen about 40 basis points in the last week.