Portugal returns to the debt market next week

  • ECO News
  • 8 September 2017

The Portuguese treasury aims to place up to one billion euros in ten-year Government bonds. This issuance emerges in a time when Portuguese yields are decreasing.

Portugal will return to the debt market next week. The Portuguese Treasury intends to place up to one billion euros in ten-year Government bonds. This new issuance comes in a time when Portuguese yields are decreasing in the secondary market.

“On the September 13th at 10:30 a.m. (11:30 a.m. CET) IGCP, E.P.E. is going to auction the Portuguese Government bond maturing on April 14th 2027, with an indicative range amount of EUR 750 million to EUR 1000 million”, says the institution headed by Cristina Casalinho.

The last time Portugal went to the market to get financing in this maturity was almost two months ago, on July 12. By then, the Portuguese Debt Management Agency (IGCP) went to the market to get 685 million euros, in an issuance maturing on April 2027.

By then, the issuance interest rate stood at 3.085%, a little under the value of ten-year yields in the secondary market. Since last month, Portuguese debt yields have shown a downward trend, standing below the 3% threshold. Mario Draghi, unlike what was expected, stated the European Central Bank will continue purchasing sovereign debt, which is pressuring interests. The Portuguese ten-year rates lowered last Wednesday below 2.75%. This session, the yield for this maturity is decreasing two basis points, to 2.842%.

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