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Greek, Portuguese, Irish Bonds Decline Amid Bailout Concern

Portugal’s 10-year bond yield rose to a record, leading a surge in the borrowing costs of Europe’s most indebted nations, as policy makers clashed over a solution to the region’s funding crisis.

German debt rose as consumer-price inflation eased in May and equities declined, boosting demand for safety. Greek, Irish and Spanish benchmark bonds slumped after German Finance Minister Wolfgang Schaeuble stepped up his calls for bondholders to assume a “fair” share of further Greek aid, pitting him against the European Central Bank, whose President Jean-Claude Trichet yesterday rejected any direct participation in a second bailout of the debt-stricken nation.