CHART OF THE DAY: Portugal's Unbelievable Bond Crash

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It’s still hard to fathom: A Moody’s downgrade having a huge impact on the market.

And yet it seems that indeed just that has happened today: What you see below is the incredible surge in Portuguese short-term yields, from under 12% yesterday afternoon to¬† this morning to around 14.5% this morning to to over 16.5% right now, a really mammoth collapse in confidence for a country that’s already been bailed out!

This is, essentially, the European nightmare scenario. Because Greek private bondholders will be forced to take haircuts, the bonds of every other country are now treated like the plague.

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