PIIGS are back with contagion

Today Portugal, the "G" in PIIGS issued a 6 month bond, the yield paid to sell this piece of junk went up from 2.045% to 3.686% That's nearly double the last auction! This means the cost of borrowing once again is in the center of european contagion fears and fears of default, the higher yield will do nothing to allay those concerns.

We seem to have a cycle of fear over Europe, then it forgotten about for a month and then it's back, it's not going away and for a simple reason, there's a big problem there and while the ECB is kicking the can down the road creating those moments of peace in Europe, once again we have walked far enough to arrive at the can again.

Here's the Euro's Reaction

 5 minute chart

15 minute chart, first red box is the open of the currency trading week, second box is where we are now.