The European stock markets are declining this morning. The bond markets are rising with Spain now at 5.75%. Credit default insurance is jumping higher. The spread between the Spain 10-year yield, 5.75%, and Germany, 1.79%, is the largest, about 400 basis points, since November 2011. With the holiday weekend on tap, traders are getting jumpy and unsure if they want to hold long equity positions over the extended weekend. U.S. futures were up overnight, then flat, and now over the last half hour turning negative.
10-Year Bond Yields:
Greece 21.79%
Portugal 12.03%
Hungary 8.97%
Spain 5.75%
Italy 5.43%
Belgium 3.41%
France 3.00%
Netherlands 2.33%
U.S. 2.23%
U.K. 2.19%
Germany 1.79%
France 10-year auctions went off minutes ago with no real surprises. The France 10-year sits smack dab on top of 3%. Greece is a Greek tragedy as it approaches and moves beyond 22%. While traders worry over Spain blowing out since yesterday, they do not realize that Portugal just blew out over 12%. Italy jumped 20 bips since yesterday. Hungary sits at 9%. Spain and Portugal are a major concern.
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