Forex News

Portugal may get some pain-relief

10/02/12 @ 09:59 GMT by Michael Derks, Chief Strategist

Amidst the perma-pain of fiscal austerity, finally some reward for Portugal. In a meeting yesterday between the German and Portuguese Finance Ministers, the former suggested that there may be room to ease the terms of Portugal’s EUR 78bln bailout package, but only after the Greek situation has been clarified. Schaeuble remarked that Portugal had made good progress in implementing the various conditions contained in the bailout. The Portuguese 10yr yield is down another 20bp today at 13.15% - down more than 500bp in a little over a week. Suddenly, Portugal is out of the intensive care unit, although it remains in a critical condition, because it simply cannot afford these borrowing costs.

Tags: Portugal

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Michael Derks

Chief Strategist

Simon Smith

Chief Economist

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