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.
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