Portugal issues eight-year debt at negative rates

  • ECO News
  • 14 October 2020

In a 2028 and 2037 double auction this morning, the Portuguese Treasury placed a total of 1 billion euros in long-term debt.

Portugal has returned to the long-term debt market with the issuance of 1 billion euros. The double auction of eight- and 17-year Treasury bonds (T-Bonds) took place on Wednesday morning and the country continues to benefit from favourable financing conditions.

The Treasury and Public Debt Management Agency (IGCP) placed 346 million in T-Bonds, which matured on 15 April 2037, with an interest rate of 0.472%. There is no comparable auction recently held by the Treasury, but in February the country financed itself with debt maturing in 2034 and paid 0.555%. More recently – in September – investors asked for 1.045% interest per T-Bonds with a maturity of 2045.

In addition to these 17-year Treasury Bonds, the IGCP also issued 654 million euros with a maturity date of October 17, 2028, at an interest rate of -0.085%. In this case too, there is no recent eight-year bond auction.

This auction was the first one that the Portuguese Treasury will hold in the last quarter of the year. In the fourth quarter financing programme, the IGCP maintained its intention to carry out new long-term debt issues.