Portuguese Bonds Drop With Italy’s as Global Turmoil Halts Rally
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Portuguese government bonds fell for the first week since July 11 as financial turmoil deepened at Banco Espirito Santo SA and a selloff in stocks damped demand for higher-yielding assets.
Italian securities also declined with equities this week as Argentina missed a deadline to pay interest to bondholders, the European Union and U.S. ramped up sanctions against Russia and manufacturing data fell short of analyst estimates. Yields on Italy’s 10-year debt set a record low before the selloff took hold and bonds across the euro area rounded out a seventh straight month of gains in July.