Portugal held a snap auction of bonds on Friday to help it fund its second quarter. But while demand was strong, yields continued to rise, presenting a bleak outlook as Lisbon attempts to avoid the need to seek a bailout package.
Reuters reported that the country missed its 2010 budget deficit target, according to data released Thursday, and the news had sent yields soaring to a new euro-lifetime high. The National Statistics Institute said that the budget deficit had hit 8.6% of GDP, which is substantially above the 7.3% target that had been agreed upon with Brussels. Nonetheless, on Friday Lisbon was able to place a greater-than-expected 1.6 billion euros’ worth ($2.265 billion) of one-year bonds to investors that were reported to include not just locals, but also Brazilian and Asian parties.