Bunds Drop as Stocks Rise; Portuguese Debt Drops as Ratings Cut
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German 10-year government bonds fell, posting their first weekly drop in three, as stock-market gains boosted demand for higher-yielding assets.
Portugal’s 10-year yields rose to a euro-era record after Standard & Poor’s cut the nation’s credit rating late yesterday. Portugal doesn’t need a rescue, Prime Minister Jose Socrates said after a European Union summit in Brussels today. He offered to resign two days ago after lawmakers rejected his cost-cutting plans. European loan growth accelerated last month, while German business confidence stayed near a record in March, reports showed today, fueling speculation the debt crisis won’t deter policy makers from raising interest rates next month.