Portuguese Debt Drops 11th Day on Rating Cut; Irish Bonds Rise

Portugal’s 10-year government bonds dropped for the 11th consecutive day after Moody’s Investors Service lowered the nation’s credit rating for the second time in three weeks amid expectations it will need a bailout.

Irish bonds advanced for a third day, narrowing the yield difference to Portuguese securities. German 10-year government bond yields were within three basis points of the highest in almost 15 months on bets the European Central Bank will raise interest rates this week. A gauge of euro-area services gained more than initially estimated and a separate report today showed retail sales shrank 0.1 percent in February.