Portugal obtains 1.5 billion with record-low interest rates

Portugal obtained even more negative interest rates to issue six and 12-month debt, even reaching the lowest rates ever in these maturities. The Treasury and Public Debt Management Agency (IGCP) placed a total of 1.5 billion in Treasury Bills (T-Bills), in a double auction held this Wednesday morning, having reached the maximum indicative amount.

With regard to longer-term securities, the country has financed itself with 750 million euros in Treasury Bills reaching maturity on 21 January 2022 at an interest rate of -0.522%. The last bond auction with this maturity took place on September 16 and, at the time, Portugal had achieved an interest rate of -0.497%.

For BT with a shorter maturity, Wednesday’s issuance amounted to 750 million euros, and the rate was -0.554%. This one also fell from -0.52% at the last comparable auction. In both maturities, these rates are historical lows for the country, as they react to investors’ strong appetite for Portuguese debt.

This was the first short-term debt auction the country held in 2021, and the agency led by Cristina Casalinho had planned to issue more debt with these maturities in November last year and eventually cancelled the auctions.