Portugal tumbles on bank worry

|By:, SA News Editor

Lisbon's PSI index is off more than 2% and government bond yields are spiking over reports of a proposed debt restructuring by the holding company behind Banco Espirito Santo - the country's largest listed bank.

Espirito Santo International has been under scrutiny since an audit found "material irregularities," and Banco Espirito - off 6.2% today - is lower by 45% over the last month.

Portugal's 10-year government note yield is up 19 basis points on the session to 3.84%.