Just hours after Greece erupted into bond-widening chaos yet again, Portugal has joined the fray.
Negotiations on the country’s budget have collapsed when the opposition party, needed because the governing Socialists do not have an outright majority, backed out, according to Reuters.
The disagreement: how to cut spending.
The spread between the German bund and 10-year Portuguese sovereign debt has widened to 332, up 20 bps on the day.
CDS on the country’s sovereign debt has spiked up 20 bps to 355 bps, according to Markit.
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