Portugal raises €1.2bn with average yield of 6.7%

The debt-burdened Portuguese government has successfully raised €1.2bn on the money markets this morning.

Its latest bond auction was two and a half times over-subscribed, with an average yield (or interest rate) of 6.7%.

Portugal needs to raise around €45bn in 2011.

Yesterday, finance minister Fernando Teixeira dos Santos said that he did not expect his country to need a bailout to resolve its financial problems.