Spanish and Italian government bonds fell for a third day as investors awaited the release of minutes from the Federal Reserve’s July meeting for signals on when policy makers will curtail monetary stimulus.
Portuguese Prime Minister Pedro Passos Coelho’s government won the support of the head of state to stay in office until its term ends in 2015 as President Anibal Cavaco Silva ruled out early elections that would disrupt completion of a bailout plan.
Portugal’s bonds advanced, with 10- year yields dropping the most since January, after President Anibal Cavaco Silva said the government will stay in office until its term ends and he doesn’t want to call early elections.
Portuguese Prime Minister Pedro Passos Coelho pledged to push ahead with a government reshuffle and to finish the country’s bailout program on time after winning the president’s backing to see out his term.
The cost of insuring Portugal’s sovereign debt fell to the lowest in three weeks after President Anibal Cavaco Silva ruled out elections that could have disrupted the completion of the nation’s bailout plan.