What a surprise?

Portugal is starting to slip on its fiscal targets.  Who could ever have thought that this might happen?

So….should we expect Portugal to begin negotiations on a second bailout package?

We expect so.

Portugal is meant to return to the markets in 2013 but, with 10 year bond yields pushing 9.5%, who are they kidding?  Isn’t 7% supposed to be the point of no return?

At least it’s nice to know that the P in PIIGS will be there for a while longer yet