LONDON, July 4 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.