by Calculated Risk on 9/02/2011 04:22:00 PM

From the NY Times: Sovereign Debt Worries Flare Again in Europe

Concerns about the euro zone’s ability to cohesively respond to its debt crisis resurfaced Friday after talks between Greece and its foreign creditors were interrupted and the head of the European Central Bank warned Italy to stick to its austerity program.

From the WSJ: Greek Bonds Plunge on Aid Deal Worries

A Greek official had said earlier Friday that a visiting troika of international inspectors has been suspended amid a dispute over the country's ability to meet its deficit targets,

The delegation of European Union, International Monetary Fund and European Central Bank officials is expected to return in about 10 days after the Greek government has prepared the draft outlines of its 2012 budget, the official added.

The Greek 2 year yield is at 47.2% and the 10 year yield increased to 18.3% today.

Here is a graph of the 10 year spread (Italy to Germany) from Bloomberg. And for Spain to Germany. The Italian spread is up to 327 and the Spanish spread is at 311. Both up sharply.

The Portuguese 2 year yield is up a little to 12.8%. And the Irish 2 year yield is up slightly to 8.1%.