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Portugal's borrowing costs ease


Portugal's borrowing costs ease


Portugal was able to borrow 1.5 billion euros in its latest auction of short term treasury bills at a lower rate of interest than it had to pay one month ago.

That is a sign that international investors are more confident that its debt reduction plans are on track.

Portugal has just passed the latest review by the European Union, International Monetary Fund and European Central Bank of what it is doing in return for a 78 billion bailout. That means it will get the next instalment of money due.

T-bills maturing in six months time had 2.7 percent interest rates, down from a 2.9 percent rate at the start of May. Bonds due in 12 months had yields of 3.8 percent, compared with 3.9 percent one month earlier.

Demand was strong and Lisbon was able to able to sell all the bonds it wanted to.

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