The last time Portugal was on the market to place debt with these maturities was on April 10th. At the time, it placed 641 million euros in bonds maturing on April 18, 2034, having paid a yield below 3%.
Portugal will return to the debt market next week. The Treasury and Public Debt Management Agency – IGCP has scheduled a double auction of ten and 14-year Treasury bonds (OT) on Wednesday, with which it intends to raise between 1,000 and 1,250 million euros.
“IGCP, EPE will hold on May 8th at 10:30 am two auctions of OT lines maturing in October 2034 (OT 2.875% 20Oct2034) and June 2038 (OT 3.5% 18Jun2038), common global indicative amount between 1,000 million and 1,250 million euros“, announced the agency led by Miguel Martín.
The last time Portugal was on the market to place debt with these maturities was on April 10th. At the time, it placed 641 million euros in bonds maturing on April 18, 2034, having paid a yield of 2.937% and capturing demand 1.25 times greater than supply.
In the case of the line that expires on June 18, 2038, it issued 353 million euros, with an interest of 3.227%. Demand was 1.41 times greater than supply. Expectations that the European Central Bank (ECB) will begin the cycle of lowering interest rates in June, combined with the fact that Portugal has seen upward revisions to both the rating and the outlook for the economy, have led to a decline of national risk premiums.
In the secondary market, Portuguese debt continues to show slight variations. Ten-year Portuguese bonds – the “benchmark” line – continue trading this Friday with a “yield” of 3.148%, which is 0.2 basis points below the last session. The 15-year debt increases by 0.7 basis points to 3.372%.
