Sovereign debt yields and spreads are under renewed pressure today in Italy, Belgium, and Spain.
Sovereign Debt Table 10-Year Bonds
| Country | Change | Yield | Spread |
|---|---|---|---|
| Germany | +.02 | 1.93 | 0.00 |
| France | +.04 | 3.57 | 1.64 |
| Spain | +.01 | 6.61 | 4.68 |
| Italy | +.06 | 6.88 | 4.95 |
| Portugal | -.02 | 11.28 | 9.35 |
| Belgium | +.06 | 5.14 | 3.21 |
| Ireland | +.47 | 8.21 | 6.28 |
Sovereign Debt Table 2-Year Bonds
| Country | Change | Yield | Spread |
|---|---|---|---|
| Germany | -.01 | 0.38 | 0.00 |
| France | +.06 | 1.78 | 1.40 |
| Spain | +.08 | 5.83 | 5.45 |
| Italy | +.07 | 7.06 | 6.68 |
| Portugal | -.35 | 14.63 | 14.25 |
| Belgium | +.10 | 4.39 | 4.01 |
| Ireland | +.02 | 8.38 | 8.00 |
Note the inverted yield curve for Italy and Belgium.
Italian 2-year bonds were smacked hard today, opening at 7.27% before calming down to 7.06%. The 10-year yield opened at 6.85 and surged to 6.98 before calming down to 6.88%. 2-year Italian bonds are not only above 7%, but also yield more than 10-year bonds.
Note: At 4:13 ET 2-Year Italian bonds are back up to 7.21%, and climbing way faster than 10-Yr bonds at 6.91%
Mike “Mish” Shedlock
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