European Bond Yield Summary 6/26/12

10-Year Yields:
Greece 27.36%
Portugal 9.64%
Spain 6.71%
Italy 6.07%

Belgium 3.12%
France 2.62%
Austria 2.39%
Netherlands 2.06%
Finland 1.90%
U.K. 1.71%
U.S. 1.62%
Germany 1.53%

Australia 2.93%
Japan 0.82%

Portugal dropped under 10% over the last few days. Spain popped over 7% last week and then recovered, but this morning is creeping back up now printing a lofty 6.71% signaling turmoil and danger again. Italy remains over 6%. In the perceived safer haven grouping, Germany is well off the recent lows in the 1.3%'s (and uber lows at 1.1%'s in early June). 

Looking at the spreads to gauge the action, the France-Germany spread, the main indicator of the Euro debt crisis mess, is 109 basis points. Use the 125 level as an indicator of serious stress and turmoil so Europe is experiencing an eerie calm currently. The Spain-Germany spread is 518; use the 520 level as as sign of stress for Spain and it now sits at the threshold. Spanish banks are in trouble as the downgrades keep occurring.  The Italy-Germany spread is 454; use 470 as a sign of trouble in Italy. The U.S.-Germany spread is 9. When Europe moves into a period of serious stress and turmoil, money seeks safety in Germany, thus, prices move up and yields move down which will increase the spread against the U.S. 10-year. Use a spread of 25 to verify major trouble in Euroland. Note that Australia's yield has dropped under 3%.

The Euro Summit is Thursday into Friday and is the 19th summit for this couple-year Euro deb crisis circus. Watch the Spain 10-year yield and Spain-Germany spread closely. U.S. futures are slightly buoyant with the opening bell about three hours away.