Debt agency places €1.25B in treasury bills at higher yields

Portugal on Wednesday placed with investors €1.25 billion in six- and 12-month Treasury Bills (BTs), the minimum indicative amount, at yields that for both maturities were higher than in the last comparable auctions in September, the state debt agency, IGCP, announced.

According to the IGCP page on the Bloomberg system, €750 million in six-month BTs were placed at an average yield of 2.417%, against the 1.291% rate on 21 September.

For 12-month BTs, €500 million were placed at an average yield of 2.725%, also well above the rate verified in September, 1.916%.

The demand for six-month bills was €1.606 billion, or 2.14 times the amount placed, while that for the 12-month bills totalled €1.909 billion, 3.8 times the amount placed.

The IGCP had announced for Wednesday two auctions of six and 12 months BTs, with an indicative amount of between €1.25 billion and €1.500 billion.

In a note, the institution specified that the BTs on offer mature in July 2023 and January 2024.

Given that the IGCP had cancelled two auctions of six- and 12-month BTs previously scheduled for 16 November, the last comparable auctions were held in September.

On 21 September, it placed €1.25 billion, the maximum indicative amount, in six- and 12-month BTs, at yields that for both maturities were positive and higher than the previous auction.

For the 12-month BTs maturing on 22 September 2023, a total of €810 million were placed at an average yield of 1.916%, against the 0.236% registered on 18 May, when €875 million had been placed. Demand for these 12-month BTs totalled €1.258 billion, 1.55 times the amount placed.

For the six-month bills, €440 million were placed at an average yield of 1.291%, higher than the negative yield of 0.179% verified also on 18 May, when €625 million were placed in BTs with the same maturity date. Demand for these stood at €1.284 billion, or 2.92 times the amount placed.