Wednesday, May 9, 2012

European Bond Yield Summary 5/9/12

Spain is blowing out; the 10-year yield now moving up above 6% a short time ago. Spanish borrowing costs are rising. This increases the heat in the Euro kitchen.

10-Year Yields:
Greece 22.98%
Portugal 11.30%
Hungary 8.08%
Spain 6.04%
Italy 5.57%
Belgium 3.18%
France 2.86%

Netherlands 2.12%
Finland 1.93%
U.K. 1.93%
U.S. 1.83%
Germany 1.54%

Italy is up 15 basis points since yesterday so it is experiencing upside pressure with yields as well, now back above 5.5% on its way to 6%.  The yields for the other troubled nations are flat since yesterday. Thus, the two trouble areas surfacing are Spain and Italy with Spain leading the band flashing warning signals above 6%. The Spain-Germany Spread is now 450 points.

Germany continues to set records as yield drops. Money is seeking a safer haven and obviously losing confidence in Spain and Italy. The Greek tragedy continues to play out causing uneasiness and worry in the Eurozone.

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