LISBON: Portugal's borrowing costs fell to their lowest levels since August in a bond auction on Wednesday, when the country placed 1.25 billion euros total of five- and 10-year government debt - at the top end of its offer range.
The 10-year bond yield fell to 2.851 percent from 3.386 at the previous auction last month, dropping slightly below the secondary market level.
The allotment yield on the shorter bond fell to 1.198 percent from 1.828 percent last month.
Portuguese bonds have been among the best performers in the euro zone, helped by an improving economy and shrinking budget deficit, and the government has said it expects ratings agencies to lift the country's standing back to investment grade at some point.
State debt agency IGCP sold 500 million euros worth of bonds maturing in October 2022 and 750 million of debt expiring in April 2027.
Demand in the auction outstripped the amount placed by 3 times on the shorter bond and 1.94 times on the longer bond.
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