EURO GOVT-Portuguese yields surge over 100 bps on political crisis
LONDON, July 3
LONDON, July 3 (Reuters) - Ten-year Portuguese government bond yields rose to their highest since December 2012 as rising political tension in the country prompted investors to dump riskier, lower-rated bonds.
Portugal's prime minister refused to accept the resignation of his foreign minister on Tuesday, raising the stakes in a political crisis that could derail Lisbon's plan to exit an international bailout. Finance Minister Vitor Gaspar, the architect of the country's austerity drive, also quit this week.
Ten-year Portuguese government bond yields were 110 basis points higher on the day at 7.62 percent, while Spanish and Italian borrowing costs also rose sharply.
Ten-year Spanish yields were 16 basis points higher at 4.72 percent while equivalent Italian yields were 14 bps higher at 4.55 percent.