Lisbon, Sept. 25, 2026 (Lusa) - Yields on 10-year Portuguese government bonds exceeded 4% on Friday for the first time since March 2017.

The threshold was crossed shortly after 3.00 p.m. in Lisbon, with yields peaking at 4.0141% by 3.39 p.m.

Over the following two hours, yields remained above this threshold on several occasions, and they eventually settled to close at 3.971%.

On Thursday, the figure had reached 4.00%, but today it breached the barrier for the first time since 28 March 2017, when it stood at 4.013%.

As the inflation outlook has evolved, investors have acknowledged the need to offload bonds, pushing yields to multi-year highs.

Yields are rising against a backdrop of higher oil and natural gas prices due to the conflict in the Middle East and disruptions to the flow of energy raw materials through the Strait of Hormuz.

Mid-month, yields on US and German government bonds reached levels last seen in 2007 and 2009, respectively.

Inflation, alongside the labour market, is one of the key indicators determining the direction of monetary policy.

At the start of the month, the European Central Bank (ECB) announced its second rate hike this year, bringing the main rate to 2.5%, a move the US Federal Reserve matched.

JO/ADB // ADB.

Lusa