Portuguese yields reverse falls, head higher

LONDON, July 4 Thu Jul 4, 2013 5:29am EDT

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LONDON, July 4 (Reuters) - Portuguese bond yields rose, albeit in low volumes, on Thursday, reversing earlier falls as investors worried the country's political crisis could derail its return to capital markets.

"The market is very nervous (about Portugal). The rebound was very short-lived (and) the U.S. holiday is killing volumes," one trader said. "They (investors) are worried about political risk in Portugal and a risk of a PSI-type event," he added, referring to so-called private sector involvement that forced losses on holders of Greek debt last year.

Portuguese five-year yields were last up 5 basis points at 6.93 percent while 10-year yields were a shade higher at 7.53 percent, having fallen as low as 7.22 percent earlier in a thin market.

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Comments (1)
lucky12345 wrote:
Who doesn’t need more borrowed money in the EU. This is a joke and the joke is going to be on Germany! The EURO was a bad idea which only gets worst as time goes on. Stop the bail-outs and forget the EURO as Germany cannot afford this madness any longer…
Action is all the great financial leaders have been taking for the last 4 years and economic growth still does not happen. Europe needs to pay off its debt, four Trillion and counting, and the EURO has to fall to about par with the US dollar! Europe then needs to SELL off ALL their state run businesses and maybe the crisis will be over!
“The problem with Socialism is that you eventually run out of other peoples’ money.” Margaret Thatcher

Jul 04, 2013 8:55am EDT  --  Report as abuse
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