Summary Box: Portugal raises $1.3 billion in bond auction; high cost reflects debt fears

Summary Box: Portugal bond sale reflects debt fear

HIGH COSTS: Portugal raised $1.3 billion in a debt auction Wednesday, but at sharply higher borrowing costs compared with recent auctions.

REVIVED CONCERNS: Portugal is seen as one of the most financially vulnerable countries in the 16-nation eurozone, and the higher borrowing costs reflected market concerns that Europe’s debt crisis may be flaring up again. Along with Spain and Ireland, Portugal is widely seen as a potential candidate for a bailout like the one provided to Greece to keep it from defaulting on its debts. The government has adopted an austerity plan that seeks to reduce its budget deficit.

STRONG DEMAND: Despite its fragile economy, Portugal has had no difficulty raising funds on international markets this year, and there was demand for more than twice the amount available.