Europe Update

 

It looks like there going to need a bigger bailout ...
From Reuters: Italian banks fall as Italy/Bund spread widens

The Italian BTP spread over German Bunds expanded by 15 basis points to 305 basis points early on Wednesday. The BTP/Bund yield gap was at around 290 basis points late on Tuesday

Here is a graph of the 10 year spread (Italy to Germany) from Bloomberg. This is probably the key graph to watch right now.
And from CNBC: S&P Expects Second Greek Haircut, New Downgrade

A new and bigger restructuring of Greek debt is likely within the next two years, an official from credit ratings agency Standard & Poor's said on Tuesday, adding a further downgrade of Greece's sovereign debt rating was "pretty certain."

Here are the links for bond yields for several countries (source: Bloomberg):

Greece
2 Year
5 Year
10 Year

Portugal
2 Year
5 Year
10 Year

Ireland
2 Year
5 Year
10 Year

Spain
2 Year
5 Year
10 Year

Italy
2 Year
5 Year
10 Year

Belgium
2 Year
5 Year
10 Year

France
2 Year
5 Year
10 Year

Germany
2 Year
5 Year
10 Year

http://feedproxy.google.com/~r/CalculatedRisk/~3/thTmKp8GxFs/europe-update_27.html