High interest rate sought to buy Euros of Portuguese debt

Investors have demanded higher interest rates to buy 1.5 billion Euros ($2 billion) of Portuguese debt as the bailed-out country’s economic recovery efforts struggle to gain traction. The government debt agency said it sold 1.05 billion Euros in 18-month Treasury bills in an auction Wednesday at a rate of 1.603 percent, up from 1.506 percent in March.
It also sold 450 million euros in six-month bills at 1.04 percent compared with 0.811 percent last month.
The agency said there was demand for double the amount on offer.
Portugal needed a 78 billion Euros bailout in 2011 to avert bankruptcy. Its bailout creditors expect its economy to contract by 2.3 percent in 2013 for a third straight year of recession. The jobless rate has climbed to 17.8 percent. (Source: UNB)

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