Next week could be when another PIG(S) goes to Brussels as Portugal, Spain and Italy all scheduling their first new year bond financing

Next week is a moment of truth as Portugal, Spain an Italy are doing there first bond sale of the new year.  We said before that the Portuguese CDS spreads are wider than Ireland's was when they had to go to Brussels with their tin cup.  Not only is the spread important, but also the timing and amount of the bond refinancing.  Also, China's participation could make or break the auction.  Via Reuters:   
Yield spreads against Bunds widened sharply for peripheral euro zone borrowers following Thursday's announcement of a Portuguese bond sale. [ID:nLIS002542] Portugal, Spain and Italy are now all scheduled to hold their first bond auctions of the new year next week.

"With the euro zone's three weakest issuers coming to market next week in the space of two days it ramps up the tension, said Orlando Green, strategist at Credit Agricole in London.

"There has to be some repricing to get (the auctions) done, but will it be enough? That depends on investor appetite."
Via AP:
The Bank of Tokyo-Mitsubishi noted that whereas Ireland's loan maturity average is seven years at an average cost of 5.8 percent, Portugal's 7-year bonds are now trading at 6.6 percent.

Portugal aims to raise euro1.25 billion ($1.64 billion) next week by auctioning off 3-year and 9-year bonds in a key test of investor confidence.

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