James HesterPortuguese sovereign debt rallied on Monday after the country was boosted by an upgrade from ratings agency Fitch.
Fitch upgraded Portuguese government bonds late on Friday, moving the rating up two notches to investment grade.
As at 0840 GMT the yield on 10-year Portuguese government bonds was at 1.747%, down 3.96% on the day. Bond prices move inversely to yields.
It takes the yields on Portuguese debt to below those of Italy; Italian 10-year yields were at 1.798%.
Strong recovery
In its report on the country´s outlook, Fitch noted that Portugal´s economy had experienced a “strong, cyclical recovery”.
Portugal had suffered in the aftermath of the financial crisis and was one of the eurozone nations to have received a significant third-party bailout.
The decision from Fitch mirrors a similar move by S&P in September and appears likely to spur investment in Portugal´s bond markets and further boost investor confidence in the nation´s ongoing economic upswing.
