European Bond Yield Summary 5/29/12

10-Year Yields:
Greece 29.24%
Portugal 12.11%
Hungary 8.48%
Spain 6.46%
Italy 5.71%
Belgium 3.09%

France 2.50%
Austria 2.26%
U.K. 1.77%
Netherlands 1.76%
U.S. 1.73%
Finland 1.65%
Germany 1.35%

The Greece drama continues and Spain is an increasingly larger problem as the hours pass. Bankia bank mess continues to drag the Spanish equity market lower. The Spanish banks are acting as a drag on Europe. The Spain 10-year yield is 6.46% at that dangerous 6.50% level which caused the headaches in Fall 2011. Portugal moved higher towards 12.50% yesterday but is moving lower today. France yields are printing historic lows now well off the 3% danger level.  Germany yields continue to print record lows at 1.35%. The Spain-Germany spread is 511 points yesterday setting record highs.

China announced a 'cash fo rclunkers' program and promises other stimulative measures which is bouncing Asian and other markets. U.S. futures are looking for a higher open as trading resumes after the Memorial Day holiday yesterday but have pared the early gains by almost one-half; the S&P futures are up about 6. Case-Shiller is important before the bell and Consumer Confidence will create a market pivot point at 10 AM.