Portugal’s Borrowing Costs Increase at Bond Auction

Portugal’s borrowing costs rose as it sold 1.3 billion euros ($1.65 billion) in bonds the day after Ireland, another high-deficit nation, was downgraded by Standard & Poor’s.

Investors demanded higher yields for six- and 10-year bonds than in the previous auctions of bonds with the same maturities. Portugal exceeded its target for the size of the sale, and the ratio of bids to bonds offered was little changed from the previous auctions.