While the rhetoric and politicking on Capitol Hill over the debt limit reaches a fever pitch, the bonds of the EU are sliding down a slippery slope towards who knows what as yields hit record highs!
While President Obama talks tough and politicians hold to their ideological ground, the clock continues to tick towards the deadline for raising the debt limit.
At the same time there is growing talk about the acceptability of the idea of a Greece debt default and growing concern over the debt of some of the countries of the EU who are not one of the PIGS, namely Italy!
Current EU sovereign bond yields (H/T Calculated Risk)
Greece 2-year: 31.1%
Portuguese 2-year: 18.3%
Irish 2-year: 18.1%
Italy 2-year: 4.1%
Stay informed of the direction of EU bond yields with this chart (again thanks to Calculated Risk)
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