Portuguese government departures leave OTs in trouble

Portugal pushed peripheral Europe firmly back onto investors’ radars on Wednesday morning, as its 10 year bond yields soared to 8% following the resignation of two government ministers. The engorged yields and political tensions raised fears that Portugal may not have full market access when its bail-out programme ends in 2014, said analysts — and that could raise the twin spectres of a full European rescue being needed, and possibly a restructuring of privately held bonds as happened to Greek government debt in February, 2012.