Portugal Bonds Lead Peripheral Rally on Debt Rating Upgrade

  • Ireland bid too as Moody’s lifts country’s rating to A2
  • Portuguese 10-year yield falls to the lowest in 20 months
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Portuguese debt led a rally in euro-area peripheral bonds after S&P Global Ratings raised the nation’s credit rating to investment grade.

The yield on benchmark 10-year notes slid to a 20-month low after S&P revisedBloomberg Terminal the sovereign rating to BBB- from BB+ with a stable outlook. Bonds in Ireland were bid after Moody’s lifted the sovereign rating to A2 from A3, citing a faster-than-expected pace of economic growth in the nation.