Portugal debt auction to raise up to 1.25bn euros

Portugal will go to the markets for up to 1.25bn euros (£1.04bn; $1.62bn) with a sale of four and 10-year bonds.

The auction will be closely watched as an indication of investor confidence, as markets see how easily - or not - the debt-hit nation can raise funds.

Yields, or the interest rate Portugal must pay to borrow funds, hit a recent fresh high on its 10-year bonds of 7.3%, before falling to 6.9%.

Nigel Cassidy reports.