Portugal’s borrowing costs rose at an auction of 995 million euros ($1.05 billion) of 10-year bonds in the country’s first debt sale since Socialist leader Antonio Costa was named prime minister.
The securities due in October 2025 were issued at a yield of 2.4294 percent and the auction attracted bids for 1.91 times the amount allotted, the country’s debt agency said. That compares with a yield of 2.3975 percent at an auction of 2025 bonds on Oct. 14, with a bid-to-cover ratio of 1.62.
The debt agency on Nov. 20 said the total indicative amount for today’s auction was between 750 million euros and 1 billion euros.
President Anibal Cavaco Silva on Tuesday named Costa to be the country’s next prime minister after the previous government was toppled with the rejection of its program in parliament on Nov. 10. The Socialists say their minority administration will be propped up in parliament by the Left Bloc, Communists and Greens.
The country’s 10-year bond yield fell 10 basis points to 2.43 percent as of 10:55 a.m. in London on Wednesday. The yield fell to 1.509 percent on March 12, the lowest since Bloomberg began collecting data in 1997, after climbing to more than 18 percent in 2012.