Wheile some media and government officials are quick to say that everything is fine with Ireland and Portugal, the market thinks otherwise.
- Irish 10-year notes yield rose to climbed to 6.46% from 6.29% in rising concerns that Ireland will need more financial aid.
- Portuguese 10-year bond yields rose to 6.39% from 6.09% (that's a 4.9% increase).
Irish Central Bank Governor said today that costs related to the country’s banking system remain manageable.” However, the country will auction as much as 1.5 billion euros ($2 billion) of 2014 and 2018 notes tomorrow. Oops!
The market is never wrong.