IGCP will issue up to 1,250 million euros in five and ten-year bonds
The auction will take place next Wednesday, when investors are asking for higher interest rates on Portuguese debt securities.
Portugal will return to the long-term debt market next week. The Treasury and Public Debt Management Agency (IGCP) has scheduled a double auction of five and ten-year Treasury bonds (T-Bonds) at a time of rising interest rates on public debt.
“On the 13th of May at 10:30 a.m., IGCP is going to auction the Portuguese Government Bonds maturing on October 2025 and on October 2030 with an indicative global range amount of 1000 million to 1250 million euros,” the agency headed by Cristina Casalinho announced in a statement.
The issuance will take place at a time of rising debt interest rates caused by the impact of the Covid-19 pandemic on the world economy. Portugal had already paid again to place short-term debt, which had not happened since 2016, and in the medium-term debt has been worsening.
This Friday, the yield on ten-year bonds trades close to 0.931%, in the secondary market, after having crossed the 1% barrier during the week.
The last time the country financed itself with this maturity was on April 22. At the time, Portugal placed 598 million euros, with an interest rate of 1.194% and demand 1.68 times higher than supply. With five-year bonds, the last comparable auction took place on March 11, when the IGCP issued 681 million with a yield of 0.059% and demand 1.63 times higher than supply.
