LISBON: Portugal sold all 1.25 billion euros in 10-year bonds on offer on Wednesday at a record low yield for a debt auction even as secondary market yields have risen in the past week on concerns that Greece could leave the euro.
The allotment yield on the Oct. 2025 bond fell to 2.5062 percent from 3.177 percent paid in the previous regular auction in November, the state debt agency IGCP said. It was also lower than near 2.9 percent Portugal paid in a syndicated 10-year bond placement last month.
Portugal exited its international bailout in May last year and resumed normal financing in the debt market with its bond yields falling sharply from the highs of nearly 18 percent in 2012. More recently, yields were helped lower by the announcement of a sovereign bond-buying programme in the euro area by the European Central Bank.
The bid-to-cover ratio was 1.88 in the auction.
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