European Bond Yields 2/23/12

The Greece 10-year yield continues higher each day now at 34.37%. Portugal 10-year is flat as compared to yesterday at 12.38%. Hungary yield blew out yesterday, the 10-year yield jumping from 8.49% to 8.82%, a 33 basis point increase, yet Hungary is rarely in the news.  This move in Hungary is huge; perhaps bells will ring if/when the yield hits 9%? Portugal and Hungary are the two main concerns right now. Perhaps a reader knowledgeable on Hungary can comment.

Italy and Spain 10-year yields remain flatish at 5.58% and 5.11%, respectively. France 10-year continues to hang a smidge under 3%.  A flight to Germany places its 10-year yield at 1.92%. The U.K. and U.S. remain over 2%. The Portugal 2's, 5's, 10's and 30's are 12.92%, 15.22%, 12.38% and 10.14%, respectively. Note the yield curve inversion from the 5's thru the 30's, also, the 2's are higher than the 10's and 30's indicating inversion. A complete inversion would occur with the short-end 2's climbing above 15.22%.  Regardless, Portugal is in trouble.