LISBON: Portuguese securities advanced, extending their world-leading gains this year, as the European Central Bank’s 1.1 trillion-euro ($1.2 trillion) bond-buying program stoked demand for government debt.
Italian and Spanish bonds also gained. Austria sold securities due in September 2021 and March 2026 on Tuesday, while Germany offered inflation-linked debt maturing in April 2026. All three of those bonds are eligible for purchase by the ECB under its quantitative easing plan. European financial markets were closed on Friday and Monday for the Easter holiday.
“There’s a lot of liquidity and the ECB is buying,” said Allan von Mehren, chief analyst at Danske Bank A/S in Copenhagen. “I don’t think we’re going to see any major changes in the trend.”
Portugal’s 10-year yield slid eight basis points, or 0.08 percentage point, to 1.63 percent as of 4:29 p.m. London time. The 2.875 percent bond due in October 2025 rose 0.85, or 8.50 euros per 1,000-euro face amount, to 111.99. The nation’s two-year yield fell as much as four basis points to a record 0.003 percent.
