THE EUROZONE HELD ITS breath earlier today as Portugal headed to the bond markets.

The Portuguese government successfully borrowed €1.25bn for 10 years at 6.7%.

The sale took place as Portugal comes under increasing international pressure to accept a bailout as fears that the country’s debt level concerns will spread to other eurozone economies.

Dow Jones and the Wall St Journal reported that the euro dropped to its lowest today against the dollar after the sale, suggesting that it did not ally fears of a contagion spread. Currency strategist Daragh Mahr of Credit Agricole said that the auction went ok, but “is not a game-changer”.

Earlier today, a Portuguese Central Bank administrator said it was time for his country to make a bailout deal, saying: “It would be easier if we had external support because the adjustment would be less abrupt: if we leave it to the markets it may be brutal,” according to Business Insider.

The Portuguese government has vehemently denied needing a bailout, despite increasing pressure from France and Germany at the weekend.

BGC Partners analyst Howard Wheeldon told the AFP today that he thinks the markets have already decided that Portugal needs outside help, regardless of the government’s opinion.