European Bond Yields 12/27/11

As the U.S. equities markets prepare for trading today, the European bond yields show that Italy's 10-year yield is now back above 7%.  All is not well in the land of too big to bail.

10-Year Yields:
Greece 34.28%
Portugal 13.16%
Italy 7.08%
Spain 5.37%
Belgium 4.09%
France 2.99%
U.K. 2.04%
U.S. 2.01%
Germany 1.95%

France is under the 3% level which is postitive news. Italy, however, is overshadowing and the debt comng to market in early 2012 that will need refinanced is an ominous event. Italy and Spain are too big to fail, and too big to bail out. Note the flight of money to the perceived safety of Germany, reflected by the yield under 2% (prices move up as demand is strong which causes yields to move lower--price and yield move opposite). Futures markets will crank up within the half hour so soon we can get a gauge on U.S. equities markets to kick off the new week. Only four trading days remain in 2011.