LONDON, June 30 Portuguese government bond
yields rose on Monday after Luxembourg's justice authorities
said they had begun an investigation into three holding
companies of Portugal's largest listed bank.
Shares of Banco Espirito Santo plunged on Monday.
Finance Minister Maria Luis Albuquerque said the bank was
well-capitalised and the government saw no threat to financial
stability and public accounts.
"Some could be selling as a hedge because they cannot sell
the bank's bonds if the market is too illiquid," one trader
Portuguese 10-year bond yields rose 9 basis
points to 3.68 percent.
(Reporting by Marius Zaharia, editing by Nigel Stephenson)