Flash: Treasuries higher on Portuguese shakeup – RBS

FXstreet.com (New York) - Treasuries were higher today as Eurozone worries return with vengeance after Portuguese 10-year yields traded almost to 8.5% this morning after their Finance Minister resigned and others in government are said to be ready to quit, warns the RBS Research Team.

There are also amped up fears about China's growth and loan markets but a stunning rise in the UK June services PMI (to 56.9 from 54.9 in May) has calmed the markets at least briefly. The Eurozone composite PMI also hit a 15mo high too. There are also serious concerns about Egypt as Morsi and the Army each say that they are ready to die as bloodshed spreads. Meanwhile the clock ticks to the Army's deadline and Oil has spiked to $102/bbl.