Portugal captivated a billion euros in treasury bonds on a five and ten-year span, with yields decreasing on the shorter maturity and increasing in the long term.
Right before the yearly Standard & Poor’s rating of the country is out, Portugal showed a better performance in terms of long-term debt costs. It successfully achieved the pre-set target of one billion euros in five and ten-year treasury bonds.
According to Reuters, the Portuguese Debt and Treasury Management Agency (IGCP) auctioned lower maturity bonds for a rate of 0.647%, in comparison to the last comparable auction of June (0.746%).
As for the ten-year bonds, the IGCP auctioned them at a rate of 1.854%, higher than July (1.727%), in an auction in which demand exceeded by 2.02 times the supply.
Portugal is back on the markets, after the summer, a period which makes investors typically “lazy”.
The transaction was held right before the evaluation from S&P comes forward, and there is a great expectation that Portugal’s evaluation will go up.