Portuguese/German 10-year yield spread widens

Thu Jan 28, 2010 4:23am EST 

 LONDON, Jan 28 (Reuters) - The premium investors demand to
hold Portuguese government bonds rather than benchmark German
Bunds rose on Thursday after two major credit rating agencies
warned about the country's fiscal challenges.
 Standard & Poor's said it would look beyond Portugal's 2010
budget to the country's updated EU stability plan before
deciding on a potential downgrade, while Moody's said the
government's latest budget projections revealed challenges
ahead. [ID:nLDE60R0GZ]
 The 10-year Portuguese government bond PT10YT=RR yielded
as much as 112 basis points over Bunds EU10YT=RR, up from
around 104 basis points late on Wednesday.
 (Reporting by Ian Chua)
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