By Jack Duffy
PARIS (MNI) - Portugal appears to be heading for a minority government in
general elections Sunday, which analysts say could pose long-term risks to the
economy but few immediate worries for fixed income investors.
Three days ahead of the vote, the Portugal Ahead centre-right coalition led
by Prime Minister Pedro Passos Coelho is seen as marginally ahead of the
Socialist Party opposition, but neither side is expected to win a majority in
the 230-seat assembly.
Despite the uncertainty, Portugal's bond yields have shown few jitters;
after climbing to 3.25% at the height of this summer's Greek crisis, Portugal's
10-year benchmark bond yield declined to 2.38% on Thursday.
Whether the minority government turns out to be centre-right or