European Government Bond Yields

Most investors are familiar with the surge in bond yields in Europe's 'peripheral' countries. Those yields have come back down and, in the case of Italy and Spain, are now below levels last seen in 2009/2010:



Even as these GIPSI's yields continue to normalize over the last year...





...the trend of yields in France, Germany, and the U.K. has been more of a slow rise since last spring:







Will the preference for government issues of Italy and Spain continue?