Greece on Tuesday sold six-month money at just under the rate of its bailout loans, clearing its
first funding hurdle of 2011 as markets focused on a looming bond sale by the euro-zone country viewed as next in line for a rescue.
Portugal, under increasing pressure to seek a bailout as yields on its debt trade at levels the market views as unsustainable, will offer five- and 10-year bonds on Wednesday. Greece on Tuesday sold 1.95 billion euros ($2.53 billion U.S.) of 26-week T-bills at 4.9%, more than it paid at the previous sale but slightly lower than expected, though traders said the country's more-than one-month absence from the market meant making accurate forecasts had been difficult.
In what will be its first sortie onto bond markets this year, Lisbon hopes it can persuade investors to lend it funds at affordable rates. Persistent investor concerns about debt servicing on the euro-zone's periphery have driven the market rate on 10-year Portuguese bonds above 7%, a level seen as unsustainable, raising the chances it may follow Greece and Ireland down the road to a bailout.
Portugal's Finance Minister Fernando Teixeira dos Santos said on Tuesday there were no plans to seek aid and Prime Minister Jose Socrates said the country had beaten its 2010 budget deficit-reduction goal, though a central bank official earlier broke ranks to say it would be better to accept outside help.
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