Portugal’s benchmark market interest rates were above 7 per cent for the 16th consecutive trading day on Friday, closing at 7.55 per cent. Greece and Ireland, the two eurozone countries to seek bail-outs so far, lasted 13 and 15 trading days respectively with bond yields of more than 7 per cent.
“They are going to need some kind of support. You can’t magic this debt away,” said Gary Jenkins, head of fixed income at Evolution Securities.
Few expect Portugal to seek a bail-out before a European Union summit next month to discuss whether any reform of the eurozone’s bail-out mechanisms is necessary.