Curve Watchers Anonymous has its eye on global interest rates that are heading North practically everywhere.

Spain 10-Year Bond Yields

After hitting a low of just above 4% earlier this year, the yield is now back above 5%.

Italy 10-Year Bond Yields

After falling as low as 4.68% today, the yield close up slightly at 4.86%. The April low was 3.76%.

Germany 10-Year Bond Yields

The yield on the Germany 10-Year government bond is 1.80, up from a year-low of 1.17%.

Thus sovereign rates are up 63 basis points in Germany, but over 100 basis points (a full percentage point) in Spain and Italy.

France 10-Year Bond Yields

Even France is up relative to Germany, from 1.66% to 2.46%, a rise of 80 basis points.

In theory, all sovereign debt in the eurozone should trade at the same yield. Clearly theory is one thing, and practice another. And the divergences are getting worse.

Mike “Mish” Shedlock