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All eyes on Portugal and other Med members
Ahead of Wednesday’s bond auction in Portugal – an important litmus test as to whether the country can actually fund itself – Portugal’s 10-year government bond yields increased to more than 7%. As shown in the graphs below, it took Greece and Ireland less than a month to request EU/IMF aid after their 10-year bond yields had breached the all-important 7% level, reported FT Alphaville (via Evolution Securities). However, Portugal has been flirting with the 7% barrier a number of times before without triggering a rescue package, yet. According to David Rosenberg (Gluskin Sheff & Partners), credit default swaps indicate a 44% chance of Portugal defaulting. Greece
Ireland
Portugal
Source: FT Alphaville, January 10, 2011. Meanwhile, the stock markets indices of the debt-ridden PIIGS countries tell their own story. These markets belong to a small handful that trade below their key 200-day moving averages. Needless to say, the benchmark indices all underperform the Dow Jones World Index by miles (bottom section of each of the charts below). Portugal
Source: StockCharts.com Italy
Source: StockCharts.com Ireland
Source: StockCharts.com Greece
Source: StockCharts.com Spain
Source: StockCharts.com More on this topic (What's this?) Global Government Bonds Sell Off; Yields Hit 2015 Highs (Jutia Group, 6/12/15) EU/ECB/IMF Says Portugal’s Economic Program On Track (Penny Stock DD, 8/12/11) Soros suggests Greece, Portugal quit euro-zone (Penny Stock DD, 8/14/11)  |
![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_4.gif)  (requires Windows Media Player) 
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By Prieur du Plessis, on January 11th, 2011 posted in: 
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