Portugal exchanged 6.64 billion euros ($9 billion) of bonds to reduce debt repayments due in the next two years as it tries to exit its 78 billion-euro international bailout without needing another rescue.
David Schnautz, fixed income strategist at Commerzbank in New York, says "it's not the time to be brave here" and invest in riskier assets. Schnautz talks with Bloomberg's Ken Prewitt on Bloomberg Radio's "Bloomberg - The First Word."
Portuguese borrowing costs topped 8 percent for the first time this year after two ministers quit, signaling the government will struggle to implement further budget cuts as its bailout program enters its final 12 months.
Greek two-year notes snapped three days of gains after the nation’s risk of default was raised to 50 percent by Moody’s Investors Service, damping optimism about prospects for an international aid package.