Portugal's request for bailout caused little disruption to financial markets. The euro gained following the expected announcement and speculators see Portugal as the final country in the region to require aid.
The European Commission Bank also signaled an easing of the region's risks this week. The bank's relaxed risk outlook for Spain and control over the fiscal situation in Portugal led to an increase in interest rates and an end to expansion of bailout mechanisms for the ESF and EFSF funds.
Spain and Italy, two periphery countries on the bailout watch list, have both shown positive improvements in recent weeks as their yield curves decoupled with 10-year bond yields falling to more normal rates nearing 5.0% and 3.25% respectively.
Wall Street Journal, April 8, 2011
No Time for Euro Complacency