Dear European periphery, this is why you should be happy that Axel Weber isn’t taking over as head of the ECB.
The existing guy, Jean-Claude Trichet, is back in the market today, a day after Portuguese yields hit a new high, snapping up Portuguese bonds. Monetizing them, basically.
That’s helped the yields on Portuguese and Spanish debt come down marginally, but… in Ireland and Greece, yields are widening again, and pretty much across the PIIGS, yields are pretty close to their crisis highs.
Here’s a look at Portuguese yields today. Note they initially started by spiking, but have now gone slightly negative.