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Portugal Sets Precedent With Near-Junk Bonds That Yield Nothing

  • Positive yields are getting hard to find in euro-area bonds
  • Nation’s 10-year rate hit 18% during sovereign debt crisis
Updated on

Portuguese bonds rallied to send benchmark yields below 0% for the first time, a dramatic turnaround from the euro-area crisis a decade ago.

The yield on the nation’s 10-year bonds declined to as low as minus 0.014% amid the relentless investor demand for the safety of government bonds in Europe, despite the development of several Covid-19 vaccinations.