Portugal boosts Irish bonds

Portuguese debt led a rally in eurozone peripheral bonds after S&P Global Ratings raised the country’s credit rating to investment grade.

The yield on benchmark 10-year notes slid to a 20-month low after S&P revised the sovereign rating to BBB- from BB+ with a stable outlook. Bonds in Ireland were bid after Moody’s lifted the sovereign rating to A2 from A3, citing a faster-than-expected pace of economic growth here.

The risk premium on Portuguese debt declined as finance minister Mario Centeno said he expects greater demand for his nation’s debt from a broader array of investors to spur lower borrowing costs both for the government and corporations.