The IGCP – Treasury and Public Debt Management Agency – issued on Wednesday a total of 1,250 million euros in debt at three and 11 months, having paid more negative rates in relation to previous auctions.
The institution led by Cristina Casalinho had set an indicative amount between 1,000 and 1,500 million euros.
At maturity at 11 months, the IGCP issued 950 million euros, paying a weighted average rate of -0.368%, which compares with -0.363% at a February 20 auction. Three-month Treasury bills (BT) totaled 300 million, with a yield of -0.415%, compared to -0.389% in the issuance in February.
"Portugal continues to benefit from the low interest rates we have in Europe after the ECB mentioned that they would only increase them by the year 2020 if economic conditions allow," said Filipe Silva, director of asset management at the Bank Carrying.
"This auction ends up reflecting what happened in the last auction of long-term bonds where we observed historical minimum rates. Portugal started to have auctions with negative rates in April 2015 which has allowed lowering the average cost of debt, "he added.
In terms of demand, the bid-to-cover ratio was 3.12 times the supply in BT with a July deadline, and 1.64 times in the March 2020 deadline.