Portuguese 10-year bond rate slips below 7.0%

The interest rate, or yield, on 10-year Portuguese bonds slipped below 7.0 percent on sovereign debt markets on Wednesday for the first time since February 2011 in a sign that Lisbon is benefitting from lighter market tension across the eurozone.

In afternoon trading, the reference rate on 10-year Portuguese debt fell to 6.993 percent from 7.073 percent at the close on Tuesday.

Similar declines were also seen on bonds issued by other highly indebted eurozone countries, such as Italy and Spain.

Market pressure has eased since Greece reached agreement on how to deal with some of its massive debt and its sovereign rating was lifted out of selective default territory by Standard & Poor’s.

Assurance by the European Central Bank that it would do whatever it takes to help the euro currency and allow members of the 17-nation eurozone obtain crucial financing has soothed investors’ nerves as well.

Portugal’s centre-right government also adopted an austerity budget in late November that includes a widespread tax increase in response to demands from its international creditors, the European Union and the International Monetary Fund.