Portugal sells $1.34 billion worth of bonds

Greek motorcycle policemen lean on their bikes in central Syntagma Square as a banner reading "Rise up, so the Measures do not Pass" is seen hanging from the Finance Ministry building, on the left, in Athens. Photo: AP.

The head of Portugal’s debt agency says a euro990 million ($1.34 billion) bond auction was oversubscribed, suggesting the government’s austerity plan has eased market concerns about the country’s high debts.

Debt agency president Alberto Soares told The Associated Press the institution received bids worth euro1.58 billion ($2.15 billion) for the April, 2021 bonds at a rate of 4.17 percent on Wednesday.

“It went very well,” Mr. Soares told The AP.

The auction came two days after the minority Socialist government unveiled the broad outline of a four—year austerity plan.

The package of measures is designed to allay fears Portugal could face similar problems to Greece where a budget crisis has triggered violent demonstrations and unsettled the European Union.