Portugal raises euro1.68B ($2.14B) in successful bond auction after Moody’s downgrade

Portugal raises $2.14B in bond auction

LISBON, Portugal — Portugal has raised euro1.68 billion ($2.14 billion) in a debt auction, attracting strong investor interest a day after Moody’s credit rating agency downgraded its bonds.

The country’s Public Debt Management Agency says it sold euro877 million in 2-year bonds and euro803 million in 9-year bonds.

The agency says there was demand for twice the amount available Wednesday.

The interest yield on the longer bonds was 5.30 percent, up from 5.23 percent on 10-year bonds at an auction last month. The 2-year bond yield jumped to 3.16 percent from 1.72 percent in April.

Moody’s Investors Service cut Portugal’s government bond ratings to A1 from Aa2 on Tuesday amid fears about the country’s high debt and low growth.