Portuguese borrowing costs ease

Feb. 2, 2011 at 3:39 PM

LISBON, Portugal, Feb. 2 (UPI) -- Portugal said borrowing costs at an auction Wednesday "confirms" a trend towards more favorable terms, easing worries that it would require international aid.

The Portuguese debt agency sold $1.74 billion in 12-month and six-month treasury notes with yields dropping from 4.03 percent to 3.71 percent on the 12-month bonds and from 3.69 percent to 2.98 percent on the six-month notes, The New York Times reported.

Treasury Secretary Carlos Pina said, "It's the fourth auction this year, and it confirms the trend for consistently more favorable debt placement conditions than in the last two months of 2010."

Fears that Spain would also have to seek international assistance also eased this week after credit rating agency Standard & Poor's allowed it to keep its AA rating.

S&P said Spain's government appeared committed to budgetary reforms, although its outlook remained negative.

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