Portugal sells 1.25 bln euros in 10-year bonds at record low yields

Portugal sold 1.25 billion euros in 10-year bonds on Wednesday at record low yields.

The bonds were sold at a yield of 2.5 percent, lower than the 2.92 percent in the previous syndicated 10-year debt sale in January. Debt demand on Wednesday was 1.88 times the amount offered, Portugal's debt agency IGCP said.

The austerity-battered country has been sticking to agreements under a bailout with the troika of its international lenders - the European Commission, the International Monetary Fund and (IMF) and the European Central Bank (ECB) - and is striving to cut its deficit target below 3 percent of gross domestic product (GDP) this year.

Portugal is planning to repay its 14 billion euros (15.8 billion U.S. dollars) of debt from the IMF earlier as the government looks to take advantage of low borrowing costs for European peripheral governments.

The prospect of the ECB purchases have eased Greece's anti-austerity stance and Portugal's bond sale shows the country hasn't yet been affected by the turmoil in Greece.

Portugal ended its bailout program with the troika in May of last year. Endit