Portugal’s Debt Falls With Spain’s on Stagnation Concern

Portugal’s government bonds led a selloff in peripheral debt in the euro area as German Finance Minister Wolfgang Schaeuble said the outlook for the region’s biggest economy has “clouded over.”

Spanish and Italian securities also fell before reports this week analysts said will add to signs of stagnation, sapping demand for the region’s higher-yielding assets. German bunds advanced and Greek securities declined, extending losses that sparked a selloff in the periphery last week. The declines came even as the slowdown boosted speculation the European Central Bank will eventually purchase government debt in a full quantitative easing program, after confirming today it began buying covered bonds.