Portugal Yields Hit 13-Year High on Budget Dispute: Euro Credit
This article is for subscribers only.
Portugal’s budget stalemate is driving the nation’s bond yields to the highest levels in at least 13 years relative to neighboring Spain, which has been more successful in tackling its budget deficit.
Investors demand 222 basis points more in yield to lend to Portugal for 10 years than to Spain. That’s more than 20 times the level at the start of this year as Portuguese leaders have so far failed to agree on a plan to cut the European Union’s fourth-largest deficit. The gap between Portuguese bonds and those of Germany, the European benchmark, reached a euro-era record of 441 basis points on Sept. 28.