The EU's rescue of Ireland has not bolstered investor confidence. Instead, the debt crisis appears to be spreading, with investors demanding extra yield on the sovereign debt of not only troubled peripheral states but also the core of Europe. Investors are questioning Belgium's ability to reduce its debt load, demanding extra yield to hold the country's 10-year bonds. Bond markets around Europe dropped as risk premiums demanded by investors for lending to Italy and Spain reached record highs. Meanwhile, Standard & Poor's announced that it is reviewing Portugal's credit rating.
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