Is Portugal About To Get A Bailout From Its Former Colony?

Everyone has been passing around a piece in FT’s Lex Column arguing that the solution to Portugal’s problem is simple. It should simply be annexed by its former colony, Brazil.

Well, maybe it’s not such a joke?

There are reports in Brazilian media, via Reuters, that Brazil is in talks to buy some Portuguese debt. How much and when remain unclear. Another possibility is Brazil buying back early some Brazilian bonds owned by the Portuguese government.

In the meantime, yields are on Portuguese 2-year notes continue their inexorable march higher, hitting new crisis highs of 7.786%

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