The Portuguese press is reporting on a Goldman Sachs report saying that the government is likely to get another 30-50B euros in bailout funds, which is enough to allow them to avoid the long-term debt market through the end of 2014.
If that’s the case, then Portuguese 2-year notes, yielding 14.7% are a heck of a deal. Maybe that’s what the market is saying, with yields down from nearly 20% last week but it’s still a long way to go to get to the Irish (4.3%), Italian (2.9%) or Spanish (2.5%) benchmarks.
If those yields keep falling, it will be tough for the Eurozone vigilantes to force another round of the crisis. The shorts need a catalyst, if not EUR will drift higher as positions are covered.
