Portuguese borrowing costs jump one whole percentage point

The report from the Wall Street Journal's Market Watch is linked here. A quote: Reports said the government sold 450 million euros of four-year bonds at a yield of 4.695%, up from 3.621% in a previous sale. Portugal reportedly sold 300 million euros of 10-year bonds at a yield of 6.242% versus 5.312% in a previous sale. A one per cent jump on the four year cost seems bad enough, but ten year interest rates of effectively six and a quarter per cent seems horrendous! Bring back the Escudo must soon become the only sensible recourse. PS Must reads for this afternoon David McWilliams in the Irish Independent on the real meaning of 6% plus interest rates, from here, followed (if you have the stomach) a good description of David Cameron's slippery treachery on the EU from Iain Martin in the Wall Street Journal, from here.