All markets are in the hands of the 'bond-boys' (or at least that is what I am calling them) manhandling the EU right now. The bond-boys are just picking away at Europe, forcing the countries to get their act together. If not, the Euro experiment goes. The new target is Italy. (The spike in yield and CDS says it all.) But this go around, the EU leaders are not sitting on their hands. They are acting fairly quickly to discuss the issue.
Ironically, the ease at which the EU is being manhandled is creating a nice demand for treasuries, despite the Fed no longer purchasing them.
Hopefully, a solid plan is being worked out, a plan that would make the EU far less vulnerable to a small group of traders. We need stability, especially in a region of the world whose combined GDP is larger than the United States of America.