European Bond Yields 1/18/12

The next chapter of the Greek drama, or more correctly Greek Tragedy, is underway as talks resume between Greece and its creditors.  Initial indications are that a deal is in the works. The World Bank cuts the global growth outlook.  Fitch says a two-notch downgrade is on the table for Italy, probably by the end of the month, as well as downgrading other Euro nations.  The euro tumbled on the news but now continues along in jagged trading.

10-Year Yields:
Greece 33.18%
Portugal 14.23%
Italy 6.53%
Spain 5.18%
Belgium 4.19%
France 3.14%
U.K. 1.95%
U.S. 1.85%
Germany 1.79%

Portugal remains elevated after yesterday's jump in yields.  Portugal auctions are on tap adding to the drama. Portugal yield was over 100 basis points lower only a month ago. Italy joblessness numbers unexpectedly rose. The Italy yield is remaining in the 6.5% neightborhood over the last day. France is creeping upwards, now 3.14%.

Note Added 1/18/12 at 5:41 AM:  The IMF proposes to boost resources for lending from 325 billion to one trillion. European markets, and U.S. futures catapult higher on the hype. The IMF plan calls for increased participation from the BRIC nations. Italy 10-year yield moves lower a few ticks, printing the lows of the session at 6.45%.