2-Year Italian Bond Yield Hits 7.27%, Yield Curve Inverts; Italy, Belgium, Spanish Bonds Smacked

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
http://globaleconomicanalysis.blogspot.com
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