by Calculated Risk on 11/12/2010 12:50:00 PM

Just an update since I've been following this over the last few weeks ... the EU finance ministers issued a statement last night that pushed down the yields for Ireland and Portugal debt:

Whatever the debate within the euro area about the future permanent crisis resolution mechanism, and the potential for private sector involvement in that mechanism, we are clear that this does not apply to any outstanding debt and any programme under current instruments.

Any new mechanism would only come into effect after mid-2013 with no impact whatsoever on the current arrangements.

The EFSF (European Financial Stability Facility) is already established and its activation does not require private sector involvement.

The Ireland 10-year bond yield fell to 8.13% (from 8.9%).

The Portugal 10-year bond yield fell to 6.74% from 7.2%.