Portugal 2 year government bonds have blasted up to 17.5% this afternoon, while Ireland 2 year bonds have crossed 15.6%.
For comparison a 2 year government bond for the United States yields .47%. Yes, that is 1/2 of 1% per year. (Don't be jealous that all the action is in Europe. America, who is also bankrupt, will see its subprime government bonds explode as well)
The European Central Bank announced this morning that they would take toxic Portugal government bonds as collateral for bank funding. This will slow but not stop the bleeding.
The chart from Portugal says it all. (Rates rising means bonds are losing value) It is referred to as a "hockey stick."