Portugal paid an allocation rate of 0.639% on Wednesday to issue 625 million euros in 10-year Treasury Bonds, setting a new historical low by achieving the first one yield below 1% to sell debt benchmark.
In a double auction, the IGCP – Treasury and Public Debt Management Agency also issued 625 million euros in TO to 15 years, having paid an allocation rate of 1,052%.
The double auction occurs at a time when Portugal has renewed minimum interest rates. In the last comparable auction, Portugal issued $ 800 million in 10-year debt, with an allocation rate of 1.059% and paid 1.563% to issue 450 million euros from OT to 15 years.
In the secondary market, yield of 10-year Portuguese sovereign debt has fallen sharply this year: it traded on Wednesday at 0.647%, compared with 1.72% at the beginning of the year.