LONDON, June 30 Mon Jun 30, 2014 5:38am EDT
LONDON, June 30 (Reuters) - Portuguese government bond yields rose on Monday after Luxembourg's justice authorities said they had begun an investigation into three holding companies of Portugal's largest listed bank.
Shares of Banco Espirito Santo plunged on Monday. Finance Minister Maria Luis Albuquerque said the bank was well-capitalised and the government saw no threat to financial stability and public accounts.
"Some could be selling as a hedge because they cannot sell the bank's bonds if the market is too illiquid," one trader said.
Portuguese 10-year bond yields rose 9 basis points to 3.68 percent. (Reporting by Marius Zaharia, editing by Nigel Stephenson)
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