Friday, March 25, 2011

Markets upbeat despite Portuguese bailout fears

Associated Press/Yahoo News
March 25, 2011

Markets brushed off concerns over the financial future of Portugal as EU leaders looked to thrash out the final details of a package designed to deal with a government debt crisis that has already seen Greece and Ireland get bailed out.

Though Portugal's borrowing costs in the markets rose to fresh euro-era highs Friday, the markets were serene Friday. The yield on Portugal's ten-year bonds spiked to 7.8 percent — an unsustainable level — as investors appeared to think it's inevitable that the cash-strapped country will end up being the third bailout victim in the eurozone.

Both Fitch and Standard & Poor's warned Thursday that the country would find it more difficult to tap bond market investors in light of the political turmoil in the country.


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