Portuguese Bonds Drop on Bets Nation May Sell Debt After Ireland

Portuguese securities fell, with 10- year yields rising the most in two months, on bets the nation may sell bonds for the first time since its international bailout after Ireland sold five-year debt yesterday.

Portuguese bonds have fallen amid “speculation that it, too, may follow Ireland in selling bonds through banks,” said Soeren Moerch, head of government bond trading at Danske Bank A/S in Copenhagen. “We recommend that investors buy them into weakness.”

The yield on Portuguese 10-year bonds climbed 20 basis points, or 0.2 percentage point, to 6.66 percent as of 9:16 a.m. London time. The rate earlier climbed 24 basis points, the most since Nov. 9.

To contact the reporter on this story: Anchalee Worrachate in London at aworrachate@bloomberg.net

To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net