10-Year Portuguese-German Yield Spread Spikes to 14.51 (New High), 10-year Yield at 16.45% (Charts)

The 10-year Portuguese/German yield spread is up 8.56% right now at 14.51! This is a new high it looks like. The spread measures Portugal's credit risk to Germany, since Germany is the safest sovereign credit in the eurozone. Look at the 1-year chart below of the spread. It is going parabolic! The 10-year Portuguese government bond yield is hitting a new high as well, up 8.1% at 16.45%. And last but not least, Portugal's credit default swaps hit a new high. Is there a bailout or default event coming?

"LONDON/LISBON, Jan 30 (Reuters) - Portugal's slide towards becoming the next Greece - needing a second bailout to avoid chaotic bankruptcy - geared up a notch on Monday as untrusting underwriters hiked the cost of insuring Lisbon's bonds to new highs and insisted it be paid up front." Read more at Reuters

Italian, Spanish, Belgian and French yield spreads to German bunds are all up as well. Fitch downgraded Italy, Spain and Belgium on Friday.

10-year Portuguese-German Yield Spread (Bloomberg)

10-year Portuguese Government Bond Yield (Bloomberg)

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