Portugal pays increased rates in short-term bond auction

Portugal raised 750 million euros ($1.06 billion) on Wednesday in short-term loans at slightly increased yield rates, Portugal’s debt management agency said.

Portugal raised 300 million euros in six-month bonds at a yield of 4.960 percent, higher than the 4.954 percent yield at the last auction in June, and 450 million euros in three-month notes at a yield of 4.982 percent, up from 4.926 percent in July.

“The yield is slightly lower than my expectations and we can call the operation a success,” said Filipe Silva, fixed-income strategist at Banco Carregosa.

Portugal wanted to avoid paying 5.0-percent yield rates, Silva said.

In morning trading, yields on Portuguese 10-year bonds were at 11.926 percent, down from 12.164 percent on Tuesday.

— Dow Jones Newswires contributed to this report —