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Portuguese Bonds In Melt Down.

  • Written by Syndicated Publisher 287 Comments287 Comments Comments
    July 7, 2011


    Portuguese Bonds in Melt Down – Euro Gold Rises to €1,056/oz – 3% From Record Nominal High on Contagion Risk

    Gold is trading at $1,515.06/oz, €1,055.42/oz and £945.73/oz.

    Gold is marginally higher in most currencies today and has risen a further 0.55% against the euro to EUR1,056/oz. It is just 3% from the record nominal high in euros at €1,087/oz due to the risk of contagion in the Eurozone.

    Gold in Euros – 1 Year (Daily)

    The Moody’s downgrade of Portugal has led to a brutal sell off in Portuguese debt in morning trade which has seen Portuguese 10 year bond yields surge from 11.02% to 12.23%. Yields on Portuguese two-year notes soared 212 basis points to over 15.14 percent. There is increasing speculation that another downgrading of Ireland is imminent and Ireland’s 10 year yield has surged to over 12%.

    Portugal received a $112 billion loan package only two months ago. It was due to sell 1 billion euros of treasury bills today but     the Portuguese government debt agency IGCP said it sold 848 million euros of bills due in October.

    Portugal is a reminder that Greece is just the tip of the iceberg and Portugal, Ireland, Spain, Italy, Belgium, Hungary in Europe and the U.S. itself face similar challenges, of greater and lesser degrees.

    Cross Currency Rates

    The risk of contagion in the Eurozone is increasing by the day which poses obvious risks to the euro currency and the global financial and monetary system.

    Investors are increasingly concerned about…

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    Portuguese Bonds In Melt Down – Euro Gold Rises To €1,056/oz – 3% From Record Nominal High On Contagion Risk | zero hedge.

    Article thumbnail image: Flickr (details here)