Portuguese Bank Borrowings From ECB More Than Double In May, Hit All Time Record of €35.8 Billion

Earlier, we pointed out the abysmal results of the most recent 5 Year Portuguese auction, which came in at a whopping 4.657%, nearly 1% higher than the last such auction from just a month ago, which then closed at 3.7%. Alas, the deteriorating funding environment in Portugal is not a fluke - according to the Bank of Portugal, bank borrowings from the ECB surged in the past month, and doubled from €17.7 billion to €35.8 billion in May. As Steven Major from HSBC said, quoted by the FT: "These yields are approaching that magic number of 5 per cent that is likely to be charged by the European stability fund. If the yields keep going up at this rate, then they will be paying much more than 5 per cent next month, which is arguably unsustainable." And confirming the non rose-colored glasses reality was another banker who said: "These yields are not sustainable. Portugal will have to access the emergency stability fund if they continue to rise at this rate." Elsewhere, Greece continue to be bankrupt.

The chart below shows total borrowings from the ECB by Portuguese banks...

And the same, represented as a month over month change.

Comments

[Ragnarok]

Superdooper!

[Tortfeasor]

If you aren't watching tennis right now, you're wrong.

[Ragnarok]

I was just excited because it's almost time to bust out the marshmallows and watch this sucker burn.  S'mores anyone?

[teaddy bearish]

mm grilled marshmallows

count me in

[Cleanclog]

And who will ECB borrow from?  And the Fed?  Just keep printing paper money, here there and everywhere.  It feels like a Dr. Seuss zone. 

Any wonder why gold is continuing to allure.  Something solid.

[jkruffin]

30yr bond at 4.04%   can't wait till we get to 2.5% so I can refinance again.

[Vampyroteuthis ...]

Too many debt holes in ship's hull. Europe is going to start sinking from the porker PIIGS.

[sheeple]

good info thanks

[Sancho Ponzi]

Portugal's GDP is about 200 billion Euros, so the Portuguese banks borrowed the equivalent of 18% of the country's GDP in one month 

[scratch_and_sniff]

"Elsewhere, Greece continue to be bankrupt. "

LMAO

[putbuyer]

Big fuck city. I have so many ignorant family in Portugal. I have been trying to teach them, but they are all drones. Soon, you will be able to buy ocean front dirt cheap. I may go there in August, should be amusing. When I'm there I fish for my food and eat corn bread - and read books. Simple stuff

JMK has done so much damage. John Maynard Keynes, You are an asshole sir.