It ain’t over until it’s over ... The yield on the 10-year Portuguese government bond closed above 14.80 percent yesterday, a new record for the euro-era. According to the FT, “The markets are pricing in a Portuguese default with 10-year bonds trading at about 50 percent of par, a deeply distressed level in the eyes of many investors.” Friday the 13th may be an unlucky omen for Portugal. On that day, almost two weeks ago, Standard & Poor’s became the last rating agency to downgrade Lisbon to junk, marking the moment for many investors when default looked inevitable for Portugal as well as Greece.” For more on this ... (full story)