Portuguese 10-year bond yields hit one-year low on ECB caution

LONDON: Portuguese 10-year borrowing costs dropped to their lowest level in over a year on Thursday after it emerged that euro zone policymakers are cautious about any change to their pledge for continued monetary stimulus.

European Central Bank policymakers worried about a possible overshoot in the euro when they met on July 20, warning that easy financing conditions "could not be taken for granted" and depended on the ECB's easy policy, minutes of the meeting showed on Thursday.

Portugal has been a major beneficiary of ECB stimulus. The yield on its 10-year government bond dropped to 2.78 percent, down 4 basis points on the day and the lowest since August 2016.