Portugal's borrowing costs rose on Monday, pulled up by a surge in Spanish bond yields, after a months-long downward trend, dpa reported. The yield for Portuguese 10-year bonds was 10.8 per cent, up from 10.5 per cent on Friday. The yield for five-year bonds rose to 10.2 per cent from 9.8 per cent. The yield for 2-year bonds, however, dropped to 7.5 from 7.6 per cent. Market pressure had previously eased on Portugal, which has enacted stringent austerity policies after being granted a bailout worth 78 billion euros (94 billion dollars) by the European Union and the International Monetary Fund. Analysts attributed the rise in bond yields to contagion from Greece and neighbouring Spain. Markets were nervous over the news that the IMF did not want to grant more aid to Greece, and over a perception that Spain may need to seek a bailout for its economy, analysts said.
