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Friday, March 11, 2011

Portugal Bailout Speculation

by Calculated Risk on 3/11/2011 02:39:00 PM

From Bloomberg: Portugal 5-Year Yield at Euro-Era Record on Bailout Speculation

When asked whether his country was preparing to request a bailout, Finance Minister Fernando Teixeira Dos Santos said European leaders must understand the “seriousness” of the region’s debt crisis.
The minister’s comments “might indicate that financial support for Portugal will be discussed at the weekend,” said Michael Leister, a fixed-income analyst at WestLB AG in Dusseldorf, Germany. “Yields show that the market is concerned, and is waiting for something,” he said.
Here are the 2 year, 5 year and 10 year Portuguese bond yields from Bloomberg. The 5 year yield is up to almost 8%, the 2 year yield is at 6.5%, up from 4.5% earlier this week.

Meanwhile, Greek Prime Minister George Papandreou and Irish Prime Minister Enda Kenny are apparently asking for better terms.

Note: The Greek ten year yield is at 12.8%. The Irish ten year yield is 9.6%. Here are the Ten Year yields for Spain, and Belgium.