The yield on five year Portuguese bonds hit low levels on Wednesday, and for other bonds interest rates are falling.
Portuguese five year debt fell 10.2 basis points to 2.51%, the lowest since 1997 when Bloomberg started accurate record keeping.
For bonds with other maturity dates the trend is positive with interest rates payable by the treasury falling. The yield on two year debt dropped 3.9 points to 1.105%. The rate on ten year bonds fell to 3,747% .
By mid-morning the treasury announced that the total amount raised in Wednesday’s two bond auctions had reached €1,250 million with demand outstripping supply.
For the one year bonds the demand was 1.57 times higher than the bonds available, while those with the shortest maturity attracted demand of four times those on offer.
This news will cheer the treasury and the Finance Minister Maria Luis Albuquerque who is in meetings next week in Lisbon with the Troika representatives who aim to complete the last funding review before freeing Portugal from its adherence to day to day austerity instruments.
