Markets: £1bn Portuguese bond auction boosts markets

UPDATE 12pm: The FTSE is up a third of a percent and other key European markets have jumped 1.3% on news Portugal has succeeded in raising £1bn in a bonds auction, easing concerns over the country's need for an EU bailout.

The debt-ridden nation, which is struggling to convince investors it can avoid a rescue, has succeeded in raising €1.249bn (£1.04bn) in an auction of 2014 and 2020 bonds launched at 10:3am in London today. London's index of 100 leading shares was up 0.3%, or 17.83 points, to 6,031.86 points on the news. Across Europe, the German Dax jumped 86.13 points, or 1.24%, at 7,027.70. In France the Cac also soared, rising 48.77 points, or 1.26%, to 3,910.69. The yield, or the interest rate Portugal must pay to borrow funds, on the 10-year bond was an average 6.719%. Yields had hit a r...