LONDON Oct 17 Portugal's borrowing costs fell
to a one-month low on Monday after the government slashed its
deficit target in a move that was welcomed by investors in the
Portugal's Socialist government on Friday announced a 2017
draft budget, saying it aimed to cut its deficit to 1.6 percent
of economic output from this year's estimated 2.4 percent.
"There is some relief in Portugal and the deficit targets
are positive," said DZ Bank strategist Christian Lenk.
Portugal's 10-year bond yield fell 3.5 basis points to 3.272
percent, its lowest level in a month, as other
euro zone bond yields rose.
(Reporting by Dhara Ranasinghe; Editing by John Geddie)