Friday, January 6, 2012

European Bond Yields 1/6/12

As the last day in the first week of trading for 2012 nears, the following yields are in place with comparisons around the world.

10-Year Yields:
Greece 35.17%
Portugal 13.38%
Italy 7.14%
Spain 5.71%
Belgium 4.65%
Australia 3.80%
France 3.41%
U.K. 2.10%
U.S. 2.00%
Germany 1.89%
Japan 0.98%

Italy is staying above 7%. Italy 2's and 5's are rising so perhaps another yield curve inversion will occur in the days ahead.  Spain has climbed from 5.14% to 5.71% in the last two days, a 57 basis point rise.  France is now over 3.4% escalating the worry. Germany dropped under 1.90%. Unicredit Bank is down 35% in only four days. Rumors indicate that the ECB is in the markets buying Italy and Spain debt today. Banks are not lending which means there must be a lot of mistrust growing in the financial sector. 

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