Portuguese bond yields soar as eurozone recovery in doubt

The value of Portuguese bonds has dropped and yields have widened to record levels, as concern mounts over EU leaders' failure to resolve the Greek debt crisis.

The yield gap between Portuguese and German 10-year bonds soared to a record level at the end of last week, widening by 18 basis points to 678 basis points, Bloomberg reports. Italian 10-year bonds were also impacted, with yields rising six basis points to 4.81%, following a €8.3bn sale of government debt. Concerns over Europe's sovereign debt crisis continue, with mouting fears over contagion risk from Greece. The European Union could withold the next installment of credit to Greece, following a report by international inspectors which showed Greece had missed all the fiscal targets ...