Portugal’s 10-Year Yield Drops to 18-Month Low on ECB Bond Plans
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Portugal’s bonds rose for a sixth-straight week, sending 10-year yields to the lowest in almost 18 months, after European Central Bank President Mario Draghi announced a plan to buy indebted-nations’ bonds.
Borrowing costs plunged below the market rates when Portugal requested financial aid from the European Union on April 6, 2011. Bond purchases may be considered for euro-area countries currently under bailout programs, such as Greece, Portugal and Ireland, when they regain bond-market access, Draghi said at a press conference in Frankfurt yesterday.