Markets Eye Portugal as Other Shoe Drops

Steve Kanaval |

Bonds always move first, and logical reasoning keeps traders eyes on how Portugal soft sells a need for reform as Portuguese leaders meet European Ministers. The concern on North American soil is we get a replay of the Greek calamity with banks closed and pensioners unable to access money freezing the economy and a long drawn out sword fight which ends in bailout.

Flashing back to those Greek days everyone raised concerns that Portugal was the next shoe to drop and today we are seeing signs of that shoe dropping.



Portuguese Minister Marques speaks in Lisbon today and said he is worried about the move in Bond prices and says he will do everything to prevent budget risks. Meanwhile, European leaders counter asking Costa to steer clear of reform.

“The European Commission didn’t reject the budget but signalled that it had risks,” Portuguese Prime Minister Antonio Costa says in comments broadcast by TV station SIC Noticias. "We will do everything in the execution of the budget to prevent the risks and for confidence to return,’’

Costa says, his government is calm and confident. Portugal’s 10-Year yield reaches highest since end of bailout.needs to prepare to tighten budget. Portugal 2 Year Note yield almost doubled today, up 46 basis points at 1.138%; their 10 Year Note yield is 3.995%, up 31 basis points today.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Comments

Emerging Growth

Kiwa Bio-Tech Products Group Corp

Kiwa Bio-Tech Products Group Corp develops, manufactures, distributes and markets, cost-effective and environmentally safe bio-technological products for agriculture in China.

Private Markets

MyForce, Inc.

As parents, we constantly worry about the safety of our loved ones. The media bombards us with incidents from across the nation school shootings, frequent assaults on campuses, and crimes…

WayBetter

The spark hit Jamie when he saw co-workers competing to lose weight. Instead of pizzas and subs, they were eating salads and jogging along the river. Some were sneakily leaving…