Portugal Leads Decline in European Credit Risk on Bailout Deal

Portugal led a decline in the cost of insuring European sovereign debt after the government reached an agreement on a 78 billion-euro ($116 billion) bailout that will allow more time for the country to reduce its budget deficit.

Credit-default swaps on Portugal dropped 29 basis points to 620, according to CMA at 10:10 a.m. in London. An index insuring high-yield corporate bonds fell to the lowest in more than three years.