Portuguese bonds plunge ahead of Fitch rating outlook

The Portuguese government bonds plunge Friday as investors awaited the country's outlook from Fitch Ratings agency later today.

The yield on the benchmark 10-year bond rose 6 basis points to 2.969 percent and the yield on short-term 3-year bond jumped 2 basis points to 0.572 percent by 09:20 GMT.

Moreover, the Portuguese bond yields jumped over 20 basis points this week on the back of DBRS ratings agency comments warning that the country’s BBB credit rating was at risk from mounting pressures from the effects of slow growth, burdensome govt and corporate debt levels and banking sector problems.

Fitch Ratings in its last report has revised the outlook on Portugal's ong-term foreign and local currency issuer default ratings (IDR) to stable from positive and affirmed the IDRs at 'BB+'.

Meanwhile, Portugal's stock index PSI20 Index traded 0.40 percent lower at 4,708.21 by 09:20 GMT.