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Japan has announced a show of support for the eurozone. Its finance minister said it will buy about a fifth of the bonds that the European Financial Stability Facility will sell later this month to finance the bailout fund.
The yield on Portugal's 10-year bond dipped slightly after hitting a new high yield of 7.16% for the fourth day, which fed more speculation it will need a bail-out like Greece and the Irish Republic.
Lisbon, of course, disagrees.
Wednesday, in a closely watched auction, Portugal will attempt to raise 1.25bn euros in government debt.
Over the weekend, France and Germany reportedly pressured Portugal to use European rescue funds to stop the slow financial drip and help isolate the crisis from spreading to Spain.
But several officials denied those reports.
Analyst Michael Leister said such conflicting statements were “bringing back memories of Ireland.”
ALSO, SEE REUTERS' PAUL TAYLOR ANALYSIS/OPINION :
On "The Battle Of Spain" as "...Germany is blocking any financial lifeline for a country until it is actually drowning. Astonishingly, China, which pledged last week to buy Spanish government bonds, is doing more to help Madrid than Berlin is."
http://www.nytimes.com/2011/01/11/business/global/11inside.html?_r=1&src=busln
