government bond

Poor Portugal. By dint of some dubious acronym, they are lumped into the same category as Greece.

First, a sizeable Greek bail-out, which appears more than adequate, sends European equities tumbling. Second, the cost of debt for the Portuguese government shot up today (6-month government bill average yield 2.955 per cent, versus 0.74 per cent at the last auction in March). Third, Moody’s has just placed Portugal on review for downgrade.