Greek and Portuguese Euro-based sovereign debt yields hit new highs today with the Greek 10-Year sovereign bond yield topping 13% for the first time in the history of the Euro and the Portuguese yield
Greece 10-Year Yield 13.27%
Portugal 10-Year Yield 8.88%
5-Year Credit Default Swaps US vs. Europe
Here is an interesting chart from Chris Puplava at PFS Group (Financial Sense) comparing default risk in the US vs Europe.
click on chart for sharper image
Note that government default risk is higher than corporate risk in Europe. The opposite is true in the US.
The market clearly believes there is risk of default on Portuguese and Greek government bonds and so do I.
Mike "Mish" Shedlock
Click Here To Scroll Thru My Recent Post List
Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.