The January test for the eurozone

Portugal was on Wednesday forced to pay big interest rate premiums to borrow from the markets in the country’s first test of sentiment of the new year.

Lisbon had to pay 3.68 per cent in yields for six-month loans, a jump from 2.04 per cent compared with a similar sale in September and 0.59 per cent a year ago.

One strategist said: “This is ominous. Portugal is heading towards a bail-out as the country’s borrowing costs are continuing to rise. This is unsustainable.”

The article is here, there is more to come in what will be an active month for European bond issues.