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Portugal borrows on bond market at sharply lower rates

Portugal paid sharply reduced interest rates to borrow 1.992 billion euros ($2.63 billion) with four-month and 12-month bonds on Wednesday.

The treasury sold 12-month bonds to raise 1.61 billion euros at 3.652 percent, down from 4.943 percent at a similar auction on February 15.

It also placed four-month bonds to raise 382 million euros at 2.168 percent, down from 3.845 percent in the middle of February.

Portugal obtained lower rates despite continuing concern among financial analysts about the state of public finances, but in a context of greatly eased tension on eurozone bond markets since Greece qualified for a second bailout earlier this month.

— Dow Jones Newswires contributed to this report —