Yields for Portugal’s bonds rose to an all-time high this morning as investors continue to shy away from buying debt from the troubled country. Speculation continues to grow that Portugal has no option but to seek a financial bail-out from the European Union.
The yield on a 10-year bond rose to 9.033 percent and credit default swaps suggest a 41 percent chance of default within the next five years. This is up considerably from the 33 percent chance of default the market assumed last month. There were also reports that Portuguese banks may be threatening to stop buying government bonds to pressure Lisbon into seeking a bailout, following the same path as Greece and Ireland.
Source: Reuters
