Portugal’s 10-year bonds advanced for a seventh day, with the yield falling below 10 percent for the first time in more than a year.
The 10-year rate declined 66 basis points to 9.49 percent as of 5:04 p.m. London time, the lowest since May 2011. Two-year Portuguese note yields fell 92 basis points to 6.94 percent, the lowest since March 2011.
“The successful completion of Portugal’s fourth adjustment program review was followed by very favorable developments in the bond market,” Portuguese Finance Minister Vitor Gaspar said late yesterday in Luxembourg after a meeting of euro-area finance ministers. “Since June 4 we have seen a very significant narrowing of the bond yields.”
Portugal’s financial aid plan remains “on track,” the European Commission, the European Central Bank and the International Monetary Fund said in a June 4 joint statement about the review of the Portuguese program.