Portugal Fails to Ease Bailout Concerns With Spending Cuts

Portugal’s announcement of additional budget-cutting measures failed to ease investor concerns on whether the country will be able to avoid following Greece and Ireland in seeking a bailout.

Portugal’s 5-year bond slumped, with the yield jumping 15 basis points to 7.92 percent, more than the 7.58 percent yield on its 10-year debt, which fell for a fifth day. The declines accelerated after Finance Minister Fernando Teixeira dos Santos said European Union leaders must understand the “seriousness” of the crisis when asked whether the country would seek external aid as a presentation of the budget measures in Lisbon.