European Bond Yields 11-25-11

Another trading day starts with global eyes focused on European bond yields. Italy's 10-year explodes above 7%. The 2-year is at record highs since the euro was established. The Italy 2-10 yield curve inversion is in place, the 2-year yield is higher than the 10-year yield, indicating a weak economy moving forward, sliding into, or already in recession. The Spain 2-year is now crossing 6% moving towards inversion which will signal a further deterioration in Europe. The U.S. 10-year sits at 1.93%.

Italy 10-year 7.23%
Germany 10-year 2.21%
U.K. 10-year 2.21%
U.S. 10-year 1.93%

Italy 5-year 7.65%
Italy 2-year 7.59%
Spain 2-year 5.99%

Note Added 11/25/11 at 5:05 AM EST: The Italy 2-year gaining another 5 basis points to 7.64%.

Note Added 11/25/11 at 5:51 AM EST: The Italy 2-year just crossed above 8%, now 7.92%. Italy 10-year now 7.34% (11 basis point jump in the last hour). Germany and U.K. 10's now up a couple more basis points to 2.23%.