Portugal's first sale of 10-year bonds since its bailout two years ago was a clear success drawing interest for more than three times the amount of the offering.
Investors bid for 10.2 billion euros ($13.3) of the securities, more than triple the 3 billion goal for the Portuguese government. The bonds are due in February 2024 and were syndicated through banks rather on the open markets. The bonds were priced to yield 5.669% with a coupon of 5.65%.
Portuguese sovereign rates have been declining since last summer when the ECB promised to backstop national debt. Rates on the generic 10-year note had spiked to 16.02% in January 2012 and were above 10% for almost all of 2011 and 2012.
Since the last July peak of 11.219% rates have more than halved to 5.481%. The spread over German bunds, the EMU's safest was 4.18% today, down from 16% in January 2012.
Portugal’s bonds are rated as high-yield or junk by Moody's Standard Poor’s and Fitch Rating.
Chief Market Strategist