Portuguese notes tumbled, leading declines in Europe, as the resignation of Prime Minister Jose Socrates stoked concern the government is moving closer to seeking a bailout.
Two-year Portuguese yields reached the highest since 1999 amid concern the country may struggle to repay about 9 billion euros ($12.7 billion) of debt due by June. Portuguese bonds stayed lower after Fitch Ratings cut the nation’s long-term foreign and local currency rating to A- from A+. Greek bonds declined, while German bunds were little changed.
