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Portugal/Germany govt bond spread widens to 67 bps

LONDON, Jan 11 (Reuters) - The premium investors demand to hold 10-year Portuguese government bonds rather than euro zone benchmark German Bunds rose on Monday.

The move followed a report in the Financial Times newspaper at the weekend which suggested that ratings agency Moody’s may downgrade Portugal unless the sovereign takes credible measures to control its budget deficit. [ID:nLDE6090O4]

The 10-year Portuguese bond PT10YT=RR yielded 67 basis points over equivalent-maturity Bunds EU10YT=RR, compared with 60 bps in late European hours the previous trading day.

Intra-euro zone spreads blew out to record levels in early 2009 at the height of the global credit crisis. (Reporting by George Matlock)