Portugal Yields Need Draghi to Keep His OMT Promise
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Portugal’s 10-year bond yield jumped more than a percentage point in the past month to levels that may test European Central Bank President Mario Draghi’s pledge to buy bonds of crisis-torn countries.
Portugal pays 6.9 percent to borrow for a decade, up from a six-month average of 6.07 percent and more than double the average interest rate of 3.2 percent that it pays for its aid loans. Two-year funding costs have soared to 3.6 percent from as low as 2.4 percent during the first week of May.