The European Central Bank intervened to prop up eurozone bond markets as political leaders and bankers warned that the debt crisis was deepening amid fears Portugal was edging closer to an international bail-out.
Although European Union officials denied they were talking about a bail-out for Portugal, the ECB had to buy the country’s government bonds to stop the market selling off steeply ahead of debt auctions in Lisbon on Wednesday.
Investor attention is also turning towards Belgium, which has the third highest public debt to GDP ratio in the eurozone.
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