Portuguese 10s are up 40 bp in yield to 13.56%. Belgian yields are down 25 bp to 5.67%. Those are moves that bond traders dream about.
Like Greece before it, Portugal is having severe trouble reaching austerity targets. It is a country with low worker productivity and a high social safety net. Those two things not work well together as there is not enough productivity to keep the social programs solvent. Belgium’s budget deal is the bright spot there and hopes are a government will finally be formed after 18 months.
In the big picture, Portugal’s plight shows that IMF-EU bailouts are no panacea.