LONDON, July 3 Ten-year Portuguese government
bond yields rose to their highest since December 2012 as rising
political tension in the country prompted investors to dump
riskier, lower-rated bonds.
Portugal's prime minister refused to accept the resignation
of his foreign minister on Tuesday, raising the stakes in a
political crisis that could derail Lisbon's plan to exit an
international bailout. Finance Minister Vitor Gaspar, the
architect of the country's austerity drive, also quit this week.
Ten-year Portuguese government bond yields
were 110 basis points higher on the day at 7.62 percent, while
Spanish and Italian borrowing costs also rose sharply.
Ten-year Spanish yields were 16 basis points
higher at 4.72 percent while equivalent Italian yields
were 14 bps higher at 4.55 percent.