Friday, March 25, 2011
Markets upbeat despite Portuguese bailout fears
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.
Posted by Yulie Foka-Kavalieraki at 8:10 PM