Portugal manages to auction debt at lower yields

Portugal says it has sold €1.5 billion ($1.9 billion) in short-term debt at interest rates lower than comparable bond auctions last month.

The country says it hit the high end of the amount of debt it wanted to sell despite recent market upheaval amid fears Greece may leave the eurozone and Spain's challenges to refinance troubled banks.

Bonds maturing in six months were sold today with yields of 2.7 per cent, compared to a rate of 2.9 per cent on 2 May. Bonds due in 12 months had interest rates of 3.8 per cent, down from 3.9 per cent on 2 May.

Portugal this week passed its fourth quarterly international bailout test — meaning it will get another installment of its €78 billion ($98 billion) rescue package.

AP