Portugal could need a bailout 'imminently' after opposition parties rejected the government's austerity policies, leading Prime Minister Jose Socrates to resign, according to reports.
The rejection of the measures in Parliament yesterday could spark a bailout, similar to the rescue packages required by Greece and the Republic of Ireland, the BBC reports. The yield on Portugal's 10-year bond was at 7.4% on Tuesday, near record highs, as investors fretted about Portugal's ability to pay back its debts. Axa Investment Manager's fund manager Nick Hayes, running the AXA Sterling Strategic Bond Fund, says: "The sovereign and peripheral fears are starting to resurface. "People are very focused on Portuguese yields at the moment. There will possibly be a Portuguese vote...
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