Portuguese yields rise after court rejects labour bill

LONDON Fri Aug 30, 2013 3:28am EDT

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LONDON Aug 30 (Reuters) - Portuguese bond yields rose on Friday after the constitutional court rejected a bill that would have allowed public sector workers to be sacked, derailing austerity efforts required by Lisbon's bailout deal.

Ten-year yields rose 13 basis points on the day to 6.80 percent, while two-year yields rose 12 bps to 5.34 percent.

"This was a measure which was implying some sort of saving for the government ... so basically it is credit negative for Portugal," one trader said.

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