Portuguese Bonds Lead Declines Amid Payment Woes as Bunds

Portugal’s government bonds led a decline in Europe’s higher-yielding securities this week as investors were spooked by a Portuguese financial company missing payments, provoking comparisons to the debt crisis.

Greek 10-year bonds fell for a second week, pushing the yield to a one-month high, undercut also by reports signaling the global economic recovery may be stalling. Greece sold debt at higher borrowing costs than initial estimates suggested. Industrial output in some of Europe’s largest economies missed estimates, and China’s exports grew slower than economists predicted. German 10-year yields fell to a 14-month low as volatility sparked by Portugal boosted demand for havens.