Portugal sold 1 billion euros ($1.3 billion) of 10-year bonds, garnering more demand than at previous offerings after it benefited from the European Union’s aid plan for the region’s most indebted countries.
Portugal’s borrowing costs fell at a sale of 762 million euros ($962 million) of six-month bills after the government said last week that it aims to narrow its budget deficit faster than previously planned.
German bunds rallied, driving five- and 10-year yields to record lows, as a backlash against austerity toppled the Dutch government and left French President Nicolas Sarkozy trailing in his re-election bid.
Germany’s 30-year bonds fell, pushing yields toward a two-month high, as optimism central banks will act to boost the global economy reduced the allure of holding the securities of Europe’s largest economy as a haven.
German government bonds fell, pushing the yield on the benchmark 10-year security to a one- month high, as stocks rose after China said it will allow a more flexible yuan, curbing demand for the safest assets.