Ten-year interests fall to minimum of December 2015

  • ECO News
  • 9 October 2017

Portuguese interests continue to plunge. In the ten-year maturity, interests decreased to minimums of December of 2015; leaving the junk status and the improvement of economic outlook helped.

This Monday morning, in comparison to last Friday, Portuguese debt interests were decreasing in all maturities, and as for ten-years interests, they reached minimums of December of 2015.

At around 8:45 a.m., in Lisbon, ten-year interests were falling to 2.361%, a minimum since December of 2015, against 2.405% last Friday. In five-years maturities, interests were also retrieving, to 0.938%, against 0.975% on Friday and 0.874% on September 20th, a minimum since April 2015.

Ten-year interests renew December of 2015 minimums

Source: Bloomberg

Also, two-year interests were decreasing to -0.054%, against the -0.039% from last Friday and -0.076, the current historical minimum, registered for the first time since September 19.

Interests have been registering a downwards trend since Standard & Poor’s decision to improve Portugal’s rating to BBB-. The markets foresee other agencies should make a similar decision, which could allow funds to include Portuguese debt in their portfolios.

The positive conclusions from the European Commission about the Portuguese economy also helped in this interests’ decrease. Nonetheless, the sixth Post-Programme Surveillance Report also warns against Portugal’s “significant vulnerabilities”.