LONDON (AP) - Portugal's hopes of avoiding a financial bailout are fading as the country's borrowing rates continue to spiral to new euro-era highs.
The yield on the ten-year government bonds rose another 0.03 percentage point to 8.02 percent, the highest level since the country joined the 17-nation euro currency in 1999.
Wednesday's increase has come a day after Standard & Poor's downgraded its credit rating on Portugal's bonds to BBB-, just one notch above junk status.
The agency said Portugal's high debt load and poor growth prospects make it likely the country will need a financial rescue.
Analysts estimate Portugal would need a bailout of up to 80 billion ($113 billion).
Portugal faces a key test in April when it has to rollover 4.5 billion.