Portuguese interests worsen and reach the 4% threshold once again

  • ECO News
  • 20 February 2017

The ten-year Portuguese sovereign debt yield suffers an increase following the improvement in the last session imposed by the ECB, who's available to purchase more debt.

The Portuguese sovereign debt interests are rising once again, after having improved in the last session. The ten-year interest rates have once again surpassed the 4% threshold due to the decreasing effect of the European Central Bank’s minutes, which show that the ECB is willing to purchase more debt.

The Portuguese yields suffered the worst increase among European peripheral countries: the ten-year rate increased more than two basis points to 4.006%, after having reached 4.04%.

Portuguese ten-year interests rise again

Source: Bloomberg (percentage values)

Portuguese yields may be increasing due to the possibility of Portugal announcing this Friday a return to the market to start issuing debt next week. The Commerzbank states the Portuguese Treasury is allowed to move forward with 10 and 13-year bonds.

The worsening of the Portuguese interests takes place after the ten-year rate went below the 4% psychological threshold in the last session, on a day in which the ECB was willing to ease up on the rulings of the purchase programme of government’s debt, opening the doors to purchases in Portugal.