Greek Deal Sparks Bond Rally Powering Portugal Yields to Record

Greece’s government bonds climbed for a fourth day after euro-area finance ministers agreed to extend the nation’s bailout funds, avoiding a cash crunch that threatened to push it out of the currency bloc.

The gains pushed the Greek three-year note yield to the lowest level in more than three weeks. Italian and Spanish securities also climbed, and Portuguese 10-year yields touched a record low, as the deal reduced concern that contagion from Greece would spread. The region’s finance chiefs still need to approve a list of measures the Greek government will undertake as part of the agreement, leaving the potential for more volatility.