Portugal raised €854m for three months today but had to pay an increased rate of 4.959%, sources in the debt market said.
Portugal's debt management agency had set a target of raising €750m to €1 billion. Demand was 2.2 times the amount of bonds on offer, it added.
On August 17, Portugal had raised €985m in three-month debt at 4.854%. This latest operation took place amid continuing nervousness on the global economy and the ability of the euro zone to put its debt crisis behind it.
Portugal, the third euro zone country after Greece and Ireland to have received a bail-out package, no longer raises long-term debt on the markets as borrowing prices are too high.
Portuguese finance minister Vitor Gaspar said yesterday that Portugal would return to the markets by 2013 once the country had passed this "financial emergency".
Last week, the EU agreed to provide Portugal with the next instalment of €11.5 billion as part of its bail-out, citing progress in the country's austerity measures.
Brussels said Portugal was "meeting important programme milestones" and demonstrating commitment to addressing "underlying weaknesses" in public finances, the financial sector and competitiveness.
