Portugal obtains lower interest rates on debt issuance. Rate dropped to 0.336% at 10-years

Portugal saw interest rates fall in a financing operation using long-term debt securities. In a double auction in which it raised 1,250 million euros on the international markets, the Treasury and Public Debt Management Agency (IGCP) achieved a lower rate than the last comparable 10-year issuance, with the yield standing at only 0.336%.

According to Reuters figures, the largest “slice” of the 1,250 million euros obtained by the Treasury was placed over a 10-year period, for a total of 800 million euros, with the rate falling short of that recorded in the last comparable auction held at the end of July.

The last time Portugal was financed over 10 years was on July 22, when it issued 820 million euro with a yield of 0.352% and demand 1.97 times above supply. Interest on these securities trades this Wednesday on the secondary market at 0.41%.

In the shortest term, seven-years, the country has placed the remaining 450 million euros at a rate of 0.095%, a deterioration in relation to the comparable emission. In that auction, the Portuguese Treasury obtained a rate of -0.108%.