Investors may have begun to aggressively sell off the bonds of Portugal and Spain. They will try to convince international investors that the Portugal and Spain sovereign debt yields are too high to allow sustained borrowing.
The war over whether Spain and Portugal can survive without aid is not a PR campaign between the governments themselves and those who have heavy gamblers based on fears of default and contagion.
The shorts are winning now as yields on Spanish ten-year notes have risen to 5.2%
Douglas A. McIntyre