LONDON May 17 Portugal's borrowing costs
tumbled on Wednesday to their lowest level since late October,
extending recent falls against a backdrop of improving economic
growth and political stability in the single currency bloc.
Ten-year Portuguese bond yields fell to a low of 3.197
percent and were last down 10 basis points on the
day, outperforming euro zone peers. That closed the gap with
top-rated German Bund yields to its tightest in
just over a year at 279 basis points.
Easing concerns about the euro zone's future following
France's presidential elections and stronger data has boosted
sentiment towards debt on its periphery. Data earlier this week
showed Portugal's economy grew at its strongest pace in a decade
in the first quarter, expanding 2.8 percent from a year earlier.
(Reporting by Dhara Ranasinghe; Editing by John Geddie and John