Fears over a widespread European debt crisis have been partially calmed following successful bond auctions for both Portuguese and Spanish instruments raising several billion Euros to help ease their respective budgetary problems.

The international bond markets have rallied in support of Portugal amidst widespread fear over its financial standing, serving as a vote of confidence for Lisbon and help to allay concerns over the need for further eurozone bailouts.

Portugal raised around 1.3bn Euros from the markets on both four and ten year government bonds, at an average rate of 6.7% interest, which has gone some way to help alleviate concerns over its financial standing and short-term liquidity.

The move comes off the back of a similarly successful Spanish bond auction, which has helped demonstrate the capabilities of Spain’s debt laden economy when it comes to raising capital from the markets.

However, some analysts remain concerned that the auctions will fail to prevent Spain and Portugal seeking emergency funding, warning that sizeable deficits without strict cutback plans could leave the respective states struggling to make ends meet.

The European Union has urged member states to contribute more funds to cover future potential bailouts of this kind, in spite of public opposition, notably from both the UK and Germany.