So the relief did not last long. The news that Irish GDP fell by 1.2% in the second quarter caused another selloff in the Irish bond market, and an increase in Irish CDS rates to a new record , and yet the Irish government is still committed to its insane projection of a small growth rate this year. The delusion of V is one of the reasons why the situation is potentially dangerous.  Portuguese 10-year spreads also went back to above 4%. El Pais reports on this story with a sense of trepidation, though pointing that Spain is not in danger,

 Irish-German 10y Spread