Portuguese Alliance to Topple Coelho Sends Bond Yields Higher
- Socialists, Left Bloc, Communists unite to replace premier
- Costa government would speed end to post-bailout spending cuts
Pedro Passos Coelho, Portugal's prime minister.
Photographer: Paulo Duarte/BloombergThis article is for subscribers only.
A loose alliance of Portuguese opposition parties is poised to topple the government, sending the country’s bond yields higher on concerns about political instability and plans to roll back spending cuts tied to the country’s previous international bailout.
The 10-year bond fell, sending the yield to a four-month high on Monday after the Socialist party, led by Antonio Costa, approved a plan to join forces with three other parties to oust Prime Minister Pedro Passos Coelho’s administration in a Tuesday vote.