Portuguese 10s are nearly 400 bp below their peaks a week ago. ECB buying in that market help turned the tide. it was believed. How much buying? Turns out, a trivial amount. The ECB bought only EUR 124 mln in bonds last week, and there is no telling whether those bonds bought were all Portuguese.
Portuguese 10s sit at a 13.7% yield down from 17.5% at their highs.
Bond markets are becoming choosier as a result of threats to impose new terms on some countries’ outstanding debt. Bonds issued under local law can have terms and conditions changed after they are issued (things like collective action clauses can be added). Bonds issued under UK law will be in demand relative to Portuguese or Greek law, as a result. You’ll get a better deal in a restructuring under UK law than local law, the thinking goes.