Portugal sells 1.65 bln euros in bonds, yield rises

LISBON, April 1 (Reuters) – Portugal’s borrowing cost rose
sharply, but less than expected, in a bond auction on Friday
from a previous sale in July 2010, with the hefty amount sold
signalling the country should be able to repay its maturing debt
this month.

Portuguese bonds yields have spiked to euro lifetime highs
this week, pushed by a government collapse that has led to
downgrades by credit rating agencies and mounting pressure for
the debt-laden country to ask for an international bailout.

The IGCP debt agency sold 1.645 billion euros ($2.34
billion) in June 2012 bonds, higher than the initially indicated
offer of 1.5 billion euros, with demand outstripping supply by
1.4 times.

The average yield on the June 2012 bond rose to 5.793
percent from 3.159 percent in the sale in July. The same
maturity yielded over 7 percent bid in the secondary market
earlier on Friday.

(Reporting by Andrei Khalip and Shrikesh Laxmidas)

Portugal sells 1.65 bln euros in bonds, yield rises