In spite of the fact the ECB is buying 60 billion euros of debt a month for 19 months, yields on many longer-dated bonds are rising.
 

Saxo Bank chief economist Steen Jakobsen sees contagion risk in bond yield breakouts.

Via email ...

 A quick note as there has been a number of "break-outs" and risk warnings activated.

First, and most important.

I have long argued that Italian 2 yr vs. 10 yr is excellent predictor of contagion on Greece, and sure enough  we have had massive spike!

2-10 if reflecting much higher short-end risk (higher yield) Italy because with France only countries who has done nothing to reign in fiscal deficit plus CLUB MED members.