Portugal's country-specific risks can help explain the Europe situation.

Portugal's 10-year bond yield is up almost 120 bp this year.  It is one of the few Eurozone members that still pay to borrow two-year money.  There are two set of drivers.  One set is country specific.  These may matter only to current or prospective investors.  The other set of considerations may have broader applicability.  This means that even those without direct exposure may want to take note of developments in Portugal. 

A few country-specific considerations are worrisome.