LONDON (Dow Jones)--The cost of insuring Portuguese sovereign debt against default using credit derivatives reached a record high Wednesday, after the country sold fewer treasury bills than expected at an auction.
Portugal's five-year sovereign credit default swap spreads rose to 197 basis points Wednesday afternoon from 165 basis points Wednesday morning, according to data provider CMA DataVision.
That represents a EUR32,000 increase in the annual cost of insuring a notional amount of EUR10 million of Portuguese government bonds against default.
The Portuguese Treasury and Government Debt Agency said it sold EUR300 million worth of 12-month treasury bills at Wednesday's auction, lower than the indicative offer of EUR500 million.
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