It’s not time to sound the alarm but there will certainly be some hand-wringing in the periphery after today’s rise in yields.
Portuguese 10-year yields are up a whopping 37 basis points to 6.58% — that’s more than 100 basis points higher than two weeks ago.
Portugal 10 year yields, daily
The pain is spread around with South of Europe with Italian 10-year yields up 15 basis points to 4.45%, which is the highest since May 5.
What might be the most troubling part of markets today is that yields are up everywhere while stocks are much lower. It’s just one day but the only scenario where that makes sense is stagflation (or tapering).
