No Love for Portugal Bonds as Debt-Burden Woes Eclipse Stability
- While economy is accelerating, indebtedness remains high
- Portugal’s bonds have fallen since ECB started QE buying
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Portugal’s string of good news is getting little attention from investors.
Its Prime Minister Antonio Costa just got his second budget through parliament, its economy is picking up and the country stands out as a beacon of stability in the midst of the turmoil set off by Brexit, a referendum in Italy that might bring down the government and rising populism. For all that, investors aren’t showing Portugal’s bonds any love, with the securities caught up in the global fixed-income sell off following Donald Trump’s election.