Portugal got negative interests in short-term debt auction, but it was no longer a record
The Portuguese Treasury raised 1,250 million euros in six and 12 months' debt. Rates demanded by investors remain in negative grounds, but were not the smallest ever.
Portugal continues obtaining negative rates in short term debt auctions. This time, to finance itself in 1,250 million euros in six and 12 months’ securities, the Portuguese Treasury registered -0.424% and -0.394% interests, respectively. But they were no longer a record.
It is still early to see if we are standing before a trend inversion. For more than a year, Portuguese auctions’ interests have been decreasing to minimum levels — to negative grounds. In the last similar operation, performed in January, Portugal was able to get the smallest rates in the same maturities to get a financing of 1,750 million euros.
This Wednesday, the amount raised was smaller and investors’ demand was even more robust than the auction from two months ago. Even so, IGCP registered a slight worsening of financing conditions.
Auctions’ interests remain in negative grounds
For example, the -0.424% rate for Treasury Bills six-months’ auction is comparable to the -0.425% from the previous operation, in light of a demand that stood three times larger than supply. In the case of the 12-month auction, the -0.394% rate is comparable to the -0.398% interest in January — when the market’s interest was 2.12 times higher than supply.
