Economics
EU Faces More Bailouts as Irish Contagion Spreads: Euro Credit
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The failure of the Irish rescue to stem a selloff across euro-region bond markets may spell more bailouts to come, starting with Portugal.
The costs to insure Portuguese debt against default rose to a record today and Spanish bonds extended declines today after sliding the most since the euro’s debut yesterday, highlighting investor concerns that officials lack the tools to contain a debt crisis threatening the currency’s survival. The extra yield that investors demand to hold Italian debt over German 10-year bonds rose to the highest in more than 13 years.