Debt crisis pushes Portugal's bond yield higher

AP News
Posted: Apr 04, 2011 5:25 AM
Debt crisis pushes Portugal's bond yield higher

The yield on Portugal's 10-year bonds is rising for the 10th straight session and has reached a new record high of 8.56 percent.

Portugal is in the grip of a debt crisis and can't afford that borrowing cost, making it likely the country will soon need to ask for a bailout like Greece and Ireland last year.

Portugal is due to repay a euro4.5 billion loan in April and has an almost euro5 billion bond repayment two months later _ a tall order for the cash-strapped eurozone nation.

Ernst & Young said in a report Monday it expected Portugal to accept a financial rescue package by June.

A general election is scheduled for June 5 after the government quit last month when opposition parties rejected its austerity policies.