Portugal’s borrowing costs increased at an auction of 1 billion euros ($1.3 billion) of 12-month bills. The securities due in May 2013 were issued at an average yield of 3.908 percent, the country’s debt management agency said. That compares with an average yield of 3.652 percent at a previous auction of 12-month bills on March 21. The auction attracted bids for 2.7 times the amount offered, compared with a bid-to-cover ratio of 2.5 in March. The debt agency also sold 500 million euros of six-month bills due in November 2012 at an average yield of 2.935 percent, attracting bids for 4.1 times the amount offered. That compares with an average yield of 2.9 percent at a previous auction of six-month bills on April 4, with a bid-to-cover ratio of 5. The IGCP, as the debt agency is known, on April 26 said that the total indicative amount for today’s auctions was between 1.25 billion euros and 1.5 billion euros. To contact the reporter on this story: Anabela Reis in Lisbon at areis1@bloomberg.net To contact the editor responsible for this story: Joao Lima at jlima1@bloomberg.net

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