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Is Contagion Returning to Euro Zone?

Could contagion be making a comeback in the euro zone? Fresh concerns about the health of a parent company of Portugal's largest bank hurt peripheral euro zone bonds. Espirito Santo Financial Group, the largest shareholder in Banco Espirito Santo said it had decided to suspend shares and bonds at its parent company. Worries about the situation hit bond yields from Portugal to Italy. And it also curbed demand at Greece's second debt sale since its default in 2012.

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