Economics
Portugal’s Bonds Drop for 3rd Day as Ratings Concern Looms Large
- Ten-year bond yield rises to highest level this month
- Fitch Ratings scheduled to issue latest update on Friday
Europe, We Have a Problem
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Portugal’s government bonds are again diverging from their euro-region counterparts.
Portuguese 10-year bonds fell for a third day Thursday even as their European peers advanced. The yield rose to the highest this month before Fitch Ratings, one of the major ratings companies which classify the nation’s debt below investment grade, or junk, is due to issue an update Friday. The bonds pared a decline Wednesday after DBRS Ltd., whose BBB (low) grading allows the securities to be acquired by the European Central Bank as part of its quantitative-easing plan, said it was comfortable with the grading.