Portugal Shows QE Limit as Neighbors' Bonds Leave It Behind
- German 10-year yield far less than Portugal's for 2 years
- Portugal's premium also rises relative to neighboring Spain's
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Portugal just can’t shake off its bears. The nation’s shorter-term notes are underperforming their counterparts across the euro area even as a recovery in stocks and oil prices boosted demand for higher-yielding assets.
The extra yield, or spread, that investors get for holding Portuguese two-year debt instead of similar-maturity notes of Germany climbed for a second day. The country’s two-year yields are more than 1 percentage point higher than those in neighboring Spain, whose leaders have been unable to form a government after inconclusive elections in December.