The European bond market is signaling that the continent's economy is "probably going to be OK," Starwood Capital chief Barry Sternlicht told CNBC on Wednesday.
"I've been watching the 10 year in Spain and Italy all year. As soon as [the yields] broke 4 [percent], it's kind of like a referendum that Europe is going to at least get through. At least the Euro risk is done," said Sternlicht, whose private equity group has $33 billion in assets under management and focuses heavily on real estate.
The bond yields are converging, he said in a "Squawk Box" interview. "So now you have the Spanish and Italian 10 years trading around where the U.S. 10 year [Treasury] is or getting close."