Sovereign bond yields in Spain and Italy have been climbing across the board, not just the longer durations. Please consider Italy pays dearly to issue one-year debt.

Italy sold €6.5bn of one-year debt at the highest cost since December, underscoring how one of the world’s biggest bond markets has been dragged back into Europe’s debt crisis.

The 364-day bills were priced to yield 3.972 per cent, but the bid-to-cover ratio fell to 1.73 from 1.79. At the last auction of similarly dated debt Rome’s Treasury only paid 2.34 per cent, according to Bloomberg.
Official Denials

Italy’s prime minister Mario Monti "forcefully denied" Italy would be next in line to seek a eurozone bailout.

Monti said comments by Austria’s finance minister that Italy was at risk of needing a rescue were “inappropriate”.

Corrado Passera, the Italian industry minister, also dismissed the idea that Rome might need external help.

Italy 2-Year Government Bonds



Chart from Bloomberg

Yield charts from Bloomberg seldom if ever match the posted yield. In this case, at the time of capture, Bloomberg show a yield of 4.72%, up 19 basis points.

I have pointed out this discrepancy to Bloomberg on numerous occasions.

Presumably the yields from Bloomberg are correct, while the chart is delayed by some unknown amount.

Spain 2-Year Government Bonds



Chart from Bloomberg

Germany 2-Year Government Bonds

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Mike Shedlock

Mike Shedlock

Mike Shedlock is a registered investment advisor representative for Sitka Pacific Capital Management.

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7 Comments So Far
RockinRickOwen Wrote: Jun 14, 2012 9:35 PM
The old Yes, Minister adage comes to mind:

"Never believe anything until it's been officially denied."
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Blair31 Wrote: Jun 14, 2012 5:41 PM
The Mediterranean countries should leave the euro.
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Barbara1247 Wrote: Jun 14, 2012 2:56 PM
The more forcefully the government denies something, the more likely it is to be true.
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Victor64 Wrote: Jun 14, 2012 1:06 PM
I'm going backwards, so if Spain was first, Greece would be next. That's just spelling PIGS backwardsi.e. Portugal, Italy, Greece & Spain1 Just saying...P.S. PIGS comprises of NO TRIBES OF ISRAEL, which have 12 tribes in total with Joseph replacing Dan. I only bring yo PIGS because they have been living OFF Germany, another Israelite Tribe from the House of Gad. Just saying...
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Pistol Wrote: Jun 14, 2012 10:46 AM
I never believe outhouse rumors, until they are officially denied in high places. Stand by for italy to go down the tubes now flushing Greece and Spain.
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willis9 Wrote: Jun 14, 2012 10:19 AM
The denials are front and center on stage with solutions supposedly behind the curtains just off to the side, but the first act never ends and they keep repeating the same lines. Next verse, same as the first.
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citizen al Wrote: Jun 14, 2012 9:51 AM
you can't fix Keynesian stupid, and the world will pay a terrible price before it finally understands that reality
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