"Portuguese 10 year yields continued their ascent this morning as bond vigilantes in Europe continue to force the issue. Although it’s clear that the ECB will be a continuing buyer of bonds it is looking increasingly likely that Portugal will eventually need aid. At that point the market will clearly turn their focus on Spain. A bailout of Spain (should bond markets force it) would require substantial alterations to the current bailout mechanism and likely cause further market jitters. On the whole, none of this looks catastrophic or remotely similar to Lehman 2.0 at the moment. The simple reason is that the ECB and Bundesbank have made it clear that they will protect the Euro at any cost..."
at http://pragcap.com/portuguese-bond-yields-hit-new-highs
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