Portugal uses private placement to sell bonds

In what may be interpreted as a sign that open market demand for Portugal’s bonds is just not there anymore (not to mention the widening of their credit spreads over the past few days), Portugal has decided to forgo the usual Dutch-auction process in favor of selling their bonds in a private placement to an unidentified buyer (China?). The 10-year spread over the Bund is now 423.51 basis points. At it’s widest point, the spread was only 36 basis points higher. The Euro-zone had better hope that China’s appetite for its questionable debt remains high.

Portugal Bond Article