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European Sovereign Debt Yields and Spreads Soaring!

  • Written by Syndicated Publisher No Comments Comments
    November 16, 2011

    The ECB, IMF, EMU, and EU are on the verge of multiple emergency meeting, if indeed meetings are not already underway. A quick check of the following bond spread tables and today’s yield action will explain.
    Across the board, yields and spreads widened significantly today. Note in particular the jump in the 2-year bond yield of Belgium.Also note the inverted spread situation for Belgium.

    The spread to German 2-year bonds is 3.49 while the spread to 10-year bonds is 3.13.

    Sovereign Debt Table 10-Year Bonds

    Country Change Yield Spread
    Germany +.00 1.78 0.00
    France +.26 3.68 1.90
    Spain +.23 6.34 4.56
    Italy +.37 7.07 5.29
    Portugal -.16 11.29 9.51
    Belgium +.32 4.91 3.13
    Ireland +.47 8.21 6.43

    Sovereign Debt Table 2-Year Bonds

    Country Change Yield Spread
    Germany +.00 0.31 0.00
    France +.28 1.82 1.51
    Spain +.31 5.31 5.00
    Italy +.49 6.48 6.17
    Portugal +.27 17.40 17.09
    Belgium +.53 3.80 3.49
    Ireland +.19 8.34 8.03

    Belgium has been off nearly everyone’s radar, but not for long. The EFSF is underfunded for Spain and Portugal alone. It’s now time to add Belgium to the major problem list.

    On second thought, the major problem list now includes every country but Germany.

    Mike “Mish” Shedlock
    http://globaleconomicanalysis.blogspot.com

    Images: Flickr (licence attribution)

    About The Author

    Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.  Visit Sitka Pacific’s Account Management Page to learn more about wealth management and capital preservation strategies of Sitka Pacific.

    You are currently viewing my global economics blog which typically has commentary every day of the week. I am also a contributing “professor” on Minyanville, a community site focused on economic and financial education.  Every Thursday I do a podcast on HoweStreet and on an ad hoc basis contribute to many other sites.

    When not writing about stocks or the economy I spend a great deal of time on photography and in the garden. I have over 80 magazine and book cover credits. Some of my Wisconsin and gardening images can be seen at MichaelShedlock.com.
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