Portugal will issue up to one billion in six and ten-year bonds

  • ECO News
  • 17 April 2020

IGCP will hold a double auction of Treasury bonds next week. It wants to raise up to a billion euros.

Portugal will return to the bond market next Wednesday. The Treasury and Public Debt Management Agency (IGCP) has announced a six-year and ten-year double auction of Treasury bonds (T-Bonds) in which it intends to place up to one billion euros.

“IGCP, E.P.E. is going to auction the Portuguese Government Bonds maturing on July 2026 and on February 2030 with an indicative global range amount of 750 million euros to 1000 million euros,” announced the agency led by Cristina Casalinho in a statement.

The issue will take place at a time of rising interest rates. After Portugal has paid to place short-term bonds, this week, for the first time since 2016, it will now focus on medium-term bonds.

In the secondary market, ten-year bonds have also seen yields worsen due to the Covid-19 Pandemic. Portugal’s interest rate even exceeded 1.5%, but the pressure ended up receding thanks to the emergency programme launched by the European Central Bank (ECB).

This Friday, these bonds trade with an interest rate of 0.95%, while six-year bonds have a yield of 0.6% after several months on negative “ground”.