Greek bond yields eased back a few days ago, but they then started climbing ago to levels that essentially say the market expects some form of default.
The Greek 10-year yield has jumped about 100 basis points (bps) to 12.3% while the two year bond is heading for the stratosphere again, up 225 bps to 18.6%.
The Spanish 10-year remains tame, though rose slightly. Its yield stands at 4.46%, up just about 3 bps.
The Greek CDS spread is now over 1,000 bps according to CMA. Portugal is over 500.
Yet here’s a further twist… Germany’s 10-year yield has fallen, down 6 bps to 2.73%.