Portugal to Sell Debt With Longest Maturity Since Rescue
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Portugal will test the markets’ appetite for debt tomorrow when the country auctions the longest maturity bills since it sought rescue funds last year from the European Union and International Monetary Fund.
Investors will be asked to bid for 11-month Portuguese bills as 10-year yields hover at record highs. The rise in rates followed the Jan. 13 decision by Standard & Poor’s to cut Portugal’s credit rating to non-investment grade, or junk, meaning the nation’s debt can no longer be held by some index-tracking funds.