Even the ECB's Cash Can't Stop Investors Worrying About Portugal
- Socialist minority government is easing austerity measures
- Yields climbed since election in contrast to Ireland, Spain
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As bonds tumble across southern Europe, it’s beginning to look like the European Central Bank’s market stimulus never existed for Portugal.
The country’s bonds have slid since an inconclusive election on Oct. 4 led to weeks of political wrangling and a minority Socialist government promising to ease austerity. Yields on benchmark 10-year securities have climbed almost 80 basis points since then to 3.09 percent. They’re higher than when ECB President Mario Draghi unveiled his bond-buying program, or quantitative easing, last January.