LONDON, Nov 21 (Reuters) - Portugal’s 10-year government bond yield fell sharply on Monday, reversing an earlier rise to nine-month highs, as news of a Chinese investment in the country’s largest-listed bank lifted sentiment towards a weak banking sector.
Chinese conglomerate Fosun has agreed to buy a 16.7 percent stake in Millennium BCP, for 174.6 million euros ($185 million) via a reserved capital increase and on Sunday confirmed its intention of raising that stake to up to 30 percent.
The bank’s shares rose around 3 percent on Monday, helping lift sentiment in the bond market, where yields had opened higher in line with a broad move in peripheral markets.
By afternoon trade, Portugal’s 10-year bond yield was down 13 basis points at 3.69 percent and off a nine-month high hit in morning trading. (Reporting by Dhara Ranasinghe; Editing by John Geddie)