EURO ZONE GOVT YIELDS

While Greek debt, spending cuts and their negotiations with European leaders continue to occupy the headlines, I thought an update on Euro Zone government yields would be timely. How bad is it out there? Will Greece default? Are Portugal yields more worrying than the Greek situation? These are the questions investors are trying to answer right now and the clock is ticking for Greek negotiations!

It would be a bold statement to say things are not bad, but compared with my earlier analysis (http://techcharts.wordpress.com/2012/01/12/euro-zone-govt-yields-2/) on Euro zone government yields I have to say that it is relatively better. Wouldn’t the yields on Greek debt be skyrocketing above 42 levels if Greece were to default? Instead 10 year yields on Greek bonds are now testing the major trend support at 33 levels. Spain is also testing a critical support level at 5. While France yields are now below 3 levels. Portugal is still high but off of its high levels at 17. Italy… broke down the trend support at 6.4 levels and eased towards 5.7 levels. Germany is the strongest, trading close to its lower boundary at 1.88 levels.

Yes it is not great out there but it is relatively better when compared with the highest levels Euro zone govt yields have reached.