After three weeks of relative calm, the ECB was forced to re-enter the fray and buy government bonds a couple of weeks ago, as rumoured by traders. Last week, €711m bonds bought under the eurozone central bank’s securities markets programme, settled.
Rumour has it the majority of bonds were Portuguese. Yields for the 10-year bonds remain on an upward trend despite this additional demand, however. The 10-year has typically closed above 7 per cent during February, touching 7.5 per cent several times in intra-day trading in the past few days. Read more