Portugal pays slightly increased rate in bond auction
(LISBON) - Portugal raised 722 million euros ($961.8 million) on Wednesday in short-term loans at slightly increased yield rates, Portugal's debt management agency said.
Despite heightened tensions over the eurozone debt crisis, the rate of return to investors on three-month notes rose only slightly to 4.972 percent, from 4.931 percent in the previous auction on September 21.
The 722 million euros was at the higher end of the 500-700 million euros that Portugal had sought to raise, and bids doubled supply compared to cover of 1.7 times in the previous auction.
The auction was held a day after Standard and Poor's confirmed its BBB- rating for Portugal, just above speculative grade, although it kept Lisbon on watch for a downgrade.
S&P warned of a deeper-than-expected recession in Portugal and there were risks to its implementation of the tough adjustment programme it agreed with in order to receive a 78-billion-euro bailout deal with the EU and IMF in May.
--- Dow Jones Newswires contributed to this report ---
Text and Picture Copyright 2011 AFP. All other Copyright 2011 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.