Portuguese yields blew out today after the country’s opposition party said it would vote NO on Wednesday’s austerity budget vote.
If the vote fails, the government of Prime Minister José Sócrates could collapse imminently and the move for the country to take a bailout from the EFSF would be hastened.
According to NYT Sócrates has called for an emergency meeting tonight in Portugal for the vote. Top officials from his Socialist Party.
Presumably the vote is going to be a tough one, as the ruling coalition is actually in the minority.
Strap in. It’s going to be a big day for the euro tomorrow.