Portuguese Debt is Europe’s shinning star this year
Despite reaching 253 Bn€, Portuguese debt has surprisingly been attracting many investors from all over the world.
In spite of being one of the biggest public debts in the world, the Portuguese public debt is having a brilliant performance in the markets. It is the most profitable this year as it is benefitting from successive positive reviews by rating agencies. Mauro Vittorangeli, CIO of Fixed Income Strategies for Europe at Allianz Global Investors, believes “there is a margin for this positive story to be continued.”
Despite reaching 253 Bn€, Portuguese debt has surprisingly been attracting many investors from all over the world. A strong sign of this tendency is Portuguese bonds’ value rising by 2.9% since the beginning of the year, holding Eurozone’s best record, according to Bloomberg Barclays Global Aggregate Index.
National debt’s profitability beats profits offered by Spanish bonds, whose valuation stands at 2.2% at the moment. These trends lowered 10Y Bond yield to 0.798%, a historical minimum sponsored by another positive evaluation by Fitch. The fact that the American Rating Agency has not negatively revised Portugal’s rating, improved its market prospects.
This upgrade reflects both the country’s economic growth and a considerable deficit reduction, prompting the markets to assume that Portugal will also be able to reduce its public debt.