Irish Notes Slump, Portugal Bonds Drop as Debt Crisis Deepens

Irish two-year notes slumped, leading the bonds of the region’s most-indebted nations lower, on concern a permanent solution to the fiscal crisis will elude European Union leaders meeting at a summit starting tomorrow.

The declines drove the yield on the security to more than 10 percent for the second consecutive day, while the spread investors demand to hold Irish 10-year bonds instead of German bunds climbed to a record. Portuguese bonds slid before Prime Minister Jose Socrates faced a vote today against his deficit-cutting plan, which may spur early elections and the need for an EU bailout.