So Much For That "Market Calming" Portugal Bailout
Following yesterday's bailout request by Portugal one would have expected that the Portuguese bond curve would tighten at least a little on some short covering in rates. One would be wrong. Except for a tiny tightening in the short-end (sub 1 Year), Portuguese rates have actually deteriorated across the curve with roughly a 0.075 widening in all points east of the 2Y. Is it time to pull an Ireland and start pricing in Portugal bailout #5?
And broader PIG rates:
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