European Bond Yields 3/7/12

The Greece bondholders have a knife held to their throats as Europe hopes for 75% to 80% participation in the Greece proposal for it to be successful. Lots of drama ahead for today and tomorrow.  By 3 PM EST tomorrow, Thursday, we should have the epilogue to this latest Greece drama.

10-Year Yields:
Greece 36.55%
Portugal 13.96%
Hungary 8.64%
Spain 5.20%
Italy 5.07%
Belgium 3.57%
France 2.89%
Netherlands 2.27%
U.K. 2.13%
U.S. 1.96%
Germany 1.79%

Portugal has now blown out to 14%. The yield was 13% the last day of February, only a week ago.  A move of 100 basis points higher per week moving forward is cause for serious concern. All the yields above rose since yesterday for France and those higher on the list. The yields from the Netherlands and lower on the list are all flat or down.  In a nutshell, money is wanting to move more towards safety and is avoiding risk especially Portugal, Hungary and Spain. Greece is already a lost cause.

The France and Germany spread shows France moving up towards 3% while Germany leaks lower now at 1.79%, again, clearly showing a preference for safety and fear creeping back into the Euro mess. Italy and Spain both are over 5% again. Spain accelerated past Italy to establish itself as an ever-increasing worry each day. The wheels appear to be coming off for Portugal. Hungary has problems but folks ignore it and Spain yields keep climbing. Germany 5-year auction goes off minutes ago resulting in the lowest yield ever seen.