When borrowing one-year money from the market costs more than a five-year loan from the EU’s bailout fund, you know the game is over. Portugal’s fate was sealed long ago, well before the resignation of José Sócrates as prime minister on March 23.
Although the government managed to get away a series of bond auctions at the beginning of the year, they were at penal rates. The auction on April 6, in which Portugal raised €1 billion and was forced to pay a yield of 5.9%
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