Portugal ‘strong enough to exit bailout programme without any backstop’

Banks are telling clients that Portugal is strong enough to exit its bailout programme next month without need for a financial backstop.

The country will probably opt for the Irish route and do without a precautionary credit line, according to analysts at Citigroup, Commerzbank and Danske Bank.

At 3.72%, Portugal’s 10-year bond yields are near an eight-year low and the country last week held its first auction of longer-term debt since seeking an emergency rescue in 2011.