Portuguese yields rise amid Espirito Santo Group concerns

LONDON, July 9 Wed Jul 9, 2014 5:16am EDT

LONDON, July 9 (Reuters) - Portugal's bond yields shot up on Wednesday with traders citing concerns about a reported proposal of a debt-for-equity swap by a company in the Espirito Santo banking family.

The country's 10-year yields rose 21 basis points to hit a day's high of 3.88 percent.

"There are more concerns about the Espirito Santo group ... It is having a knock-on effect on the government bonds market ... There's a CP (commercial paper) maturing and there are proposals to delay payments or paying ... equity instead," one trader said.

(Editing by Marius Zaharia)