Portugal sold 10-year and 4-year government bonds worth 1.249 billion euros today, where yield on the securities maturing 2020 inched down to 6.719% compared with 6.806% the previous auction and expectations of 7.0% while borrowing cost on bonds repayable 2014 soared to 5.396% from the prior 4.041%.

Demand on 10-year bonds was 2.6 times higher than the previous sale, whereas the 4-year bonds were 3.2 times above the prior auction's demand.

Despite the successful bond selling by Portugal today, some analysts still see the country as a preferable candidate for asking for a bailout, especially as the recent bond purchase by the ECB to the Portuguese debt is expected to raise yields, causing further tensions in markets.

Tomorrow, eyes will be on Spain and Italy as they will also sell long-term bonds.