Portugal issues 1,250 million euros in short-term debt with more negative rates
The country raised 1,250 million euros via Treasury bills maturing in three and 11 months.
Portugal obtained a negative interest rate in the double auction of short-term debt. The rates were even lower than those recorded in the comparable operation in June, with the Treasury and Public Debt Management Agency (IGCP) capturing the maximum amount foreseen in this emission, of 1,250 million euros, during the holiday period.
According to Reuters data, the Treasury financed itself with a rate of -0.501% in the shortest term, at three months, which compares with -0.48% of the previous operation. At this maturity, the IGCP placed 300 of the 1,250 million euros of funding, with demand exceeding supply by 3.93 times.
In the 11-month Treasury bills, in which the IGCP placed the largest amount foreseen, for a total of 900 million euros, the agency recorded interest of -0.473%, also lower than the -0.438% reached in June.
These more negative interest rates than those recorded in previous issues reflect the behaviour of public debt in international markets, with demand pushing up the price of securities and sinking rates.
