European Bond Yields 2/1/12

10-year yields in Europe are all lower across the board. Portugal 10-year yield is at 16.09%, a 72 basis point drop in 24 hours. Hungary lost a few ticks but remains elevated at 8.89%. Italy 10-year is now under 6% at 5.75%. It is amazing to see this viewed as positive.  Sure the yields are backing down but 5.75% is a lofty number.  France remains above that pesky 3% level and will provide a gauge moving forward. Watch to see if the 3% level is maintained, or not.

Money continues to seek safety in the U.K., U.S. and Germany with 10-year yields of 2.01%, 1.82% and 1.83%, respectively. Watch to see if the U.K. drops under 2% to indicate a further move of money into the U.K.