Portuguese Yields Recover as PM Rebuilds Cabinet

Portugal’s prime minister faces a day of talks aimed at shoring up his coalition, reeling after the resignations of two senior ministers.

Pedro Passos Coelho is anxious to keep his conservative partners on board, to defuse a political crisis and avoid the turmoil of an early election.

His coalition is under intense pressure to stick to the tough austerity targets dictated by Portugal’s bailout.

But the interest rate on Portuguese bonds has dropped back below 8%.

Yields on 10-year Portuguese bonds fell to 7.26% on Thursday. The sharp spike – topping 8% on Wednesday – had revived market jitters about instability in the eurozone.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza