Portugal Bond Yields, CDS Spike on S&P Downgrade, Fighting Greek Contagion Risk (Charts)

Portugal is trying to fight off Greek debt contagion risk.  Today Greece and the National Bank of Greece (NBG) were both downgraded and Government yields/CDS spiked while equities took a hit (see post).  As many have said, including Pimco's Mohammed El-Erian recently on  CNBC, sovereign and corporate credit risk could spread into other European countries which is putting a bid under the US Dollar and Gold, and killing the Euro. I'll post charts out later.

Portugal was downgraded two notches to A- (Reuters) on high debt levels/budget deficits.  It's now more difficult for Portugal to tap markets for capital as risk rises (Bloomberg).  Bloomberg.com provides data on Portuguese Government Bonds @ GSPT10YR:IND Portuguese 10 Year Note and GSPT2YR:IND Portuguese 2Y Note.  Here are chart snapshots from Bloomberg.  The Portugal 2-Year Bond spiked to 4.92% and the 10-Year Bond hit 5.71%.  From CMA Datavision, Portugal 5-Year credit default swaps were up 24% to 385.89 basis points (3.8589%) and Ireland CDS actually widened the most, up 27% to 252.71bps.  The Dow Jones Portugal Equities Index ended down 5.22% and pierced support (or actually testing the low-of-day from February).  A Zona Euro tem problemas.

$PTDOW: DJ Portugal Index (Stockcharts.com)

Portuguese 2-Year Bond Yield Spikes to 4.92% (Source: Bloomberg)

Portugal 10-Year Bond Yields 5.71% (Source:  Bloomberg)