Interest rate on Portugal’s 10-year government bonds at a minimum of March 11

  • ECO News
  • 2 July 2020

Relief from national yields follows the successful issue of 4 billion euros in Treasury Bonds, with a maturity of 15 years at an interest rate of 0.928%

The interest rate on Portuguese debt retreats this Thursday, with the ten-year rate falling to March 11 lows, a week before the declaration of the state of emergency. The easing of national yields comes after the successful completion of a 15-year syndicated bond issue by the Portuguese Treasury.

The Portuguese ten-year government bonds trade at an interest rate of 0.436% in the secondary market, five basis points below the previous session. In other words, the lowest since March 11, even before the declaration of the state of emergency in Portugal on March 18.

This easing of the interest rate comes after the Portuguese Treasury (IGCP) has completed a ten-year issue on Wednesday. In this operation in which the Treasury had the support of a banking syndicate, 4 billion euros were issued, with an interest rate of less than 1% (0.9%), with demand being over ten times the amount guaranteed.

But the improved investor sentiment is also reflected in the yields fall on remaining sovereign debts of southern Europe as economic activity recovers from the pandemic.