Despite media rumors that the Portuguese foreign minister Portas, who resigned on Tuesday precipitating a complete collapse in Portugual bond prices and ushering in the latest European political crisis, has agreed to stay in the government as a Deputy PM and economy minister (nothing like some title inflation-pro-quo), things in Portugal are rapidly turning from bad to worse. To wit: PORTUGUESE 10-YEAR BONDS DECLINE; YIELD RISES 14 BPS TO 7.60% PORTUGUESE TWO-YEAR NOTE YIELD RISES 60 BPS TO 5.64% PORTUGUESE 2-YEAR YIELD REACHES 5.66%, HIGHEST SINCE NOV. 20 The main reason for the collapse appears to be the near ... (full story)