Jan. 16 (Bloomberg) -- Portugal will be removed from Citigroup Inc.’s European Government Bond Index following its downgrade by Standard & Poor’s, fixed-income strategists at the bank said in a research report today.
“This did generate selling when it happened to Greece and may be negative for Portuguese spreads,” London-based Peter Goves, Jamie Searle and Mark Schofield wrote in the report. “We note, however, that many customized benchmarks removed Greece, Portugal and Ireland after Greece was downgraded to junk and this may limit the size of the flows this time around.”
Portugal’s credit rating was cut two levels to BB with a negative outlook by S&P on Jan. 13.
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