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: Calculated Risk

Europe Update

By Anonymous

A few notes and stories ...
? Portugal bond yields are soaring with the 10-year near 7.5%. There is growing speculation that Portugal will be the third European country (after Greece and Ireland), to require a bailout.

? The last European meeting failed to reach a consensus on a resolution mechanism. There is a meeting of several EU leaders, apparently including Angela Merkel and Nicolas Sarkozy, in Helsinki on March 4th, and then a special eurozone debt crisis summit on March 11th. (A Portugal bailout might be high on the agenda by then - especially since Portugal has large funding needs in April).

? The Irish election is on February 25th.

? From Reuters: ECB borrowing spike intensifies bank speculation

Emergency borrowing from the European Central Bank remained exceptionally elevated for a second straight day on Friday, intensifying speculation that one or more euro zone bank might be facing new funding problems.

? From the NY Times: Spain Gives Savings Banks Six More Months to List Equity

? Here are the Ten Year yields for Spain, Ireland and Greece (mostly moving sideways other than Portugal, although Ireland seems to be drifting up too).

Full post as published by Calculated Risk on February 18, 2011 (boomark / email).