Remember Ireland? It was a country in crisis that got a lot of headlines over the last week. It still is in crisis, but the world’s focus is clearly shifting to the rapidly deteriorating scene in Portugal and Spain, the latter of which is clearly the title-card event.
Yields are once again blowing out across the board.
Meanwhile, there are back-and-forth rumours about whether Europe is already pushing Portugal to ask for a bailout. Currently that’s being denied by both the Portuguese and the Germans.
This is what the recent history of the Spanish 10-year curve looks like: