The Market Is Completely Giving Up On Portugal Right Now

Markets are rallying today, and yields are down for peripheral countries, but markets are throwing Portugal to the wolves.

Check out this chart of the Portuguese 2-year, which is up again today.


Photo: Bloomberg

Now here’s something that might make you go hmm…

Portugal has a tiny economy, but the one country that’s overwhelmingly exposed to it is Spain.

And yet, here’s the Spanish 2-year. It’s pretty much making the exact opposite move of late.


Still, given the connection between the two, you have to wonder how long the market will stay not worried about contagion.

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