Portugal courts confidence

A tick up in sovereign bond yields has followed Friday’s late announcement by the Portuguese Constitutional Court that some budget austerity measures are a no-no, for violating principles of equality and proportionality.

Benchmark 10-year yields rose 7 basis points to 3.72 percent, according to Reuters, with weakness also seen in other euro zone peripheral government bonds.

The FT notes the need for tax rises and, while the country has exited the official bailout programme, there are still risks to a further package of rescue loans.