Portugal issued treasury bonds totaling 1,013 million euros, 405 million in 10-year bonds with a demand of 1.82 and 608 million in 12-year bonds with a demand of 1.63.
Portugal went to the market this Wednesday to issue 10-year and 14-year debt. In 10-year Treasury Bonds (with a maturity date of October 2034), the rate/yield was 3.075% and the issuance amount amounted to 405 million euros, with demand exceeding 1.82 times supply.
In the 14-year Treasury Bonds (with a maturity date of June 2038), the IGCP (Treasury and Public Debt Management Agency) placed 608 million euros with an interest rate of 3.297%. Here demand exceeded supply by 1.63 times.
Portugal issued Treasury Bonds for a total amount of 1,013 million euros, below the global indicative amount that ranged between 1,000 million euros and 1,250 million.
Filipe Silva, Investment Director at Banco Carregosa, regarding Treasury Bond issues, evaluated the operation, saying that “in the 10-year issue and compared to the last comparable auction in April, we saw an increase in the yield of 2.937% for the 3.075% and in the 14-year issue we saw an increase from 3.222% to 3.297%”.
“In the last two weeks we have seen a fall in interest rates on sovereign debt, Portugal also saw its rates fall and follow this movement and ended up benefiting from the movement in today’s auction”, adds Filipe Silva.
“The market expects a reduction in interest rates by the European Central Bank in June, however we could see some volatility in the debt market if the data that is released significantly changes expectations that are currently discounted”, highlights the Investment Director of Banco Carregosa.
Portugal had issued a triple issue of Treasury Bonds (OT) 10, 14 and 21 years on April 10th.
