Portugal recorded a new all-time low on its 10-year Treasury Bond issuance on Wednesday by paying an allocation fee of 0.264% to issue 600 million euros.
In a double auction, the IGCP – Treasury and Public Debt Management Agency also issued EUR 400 million in 15-year OT, having paid an interest rate of 0.676%. In total, the institution led by Cristina Casalinho has issued EUR 1 billion, and in the announcement of the auction set an indicative overall amount between EUR 1 billion and EUR 1,250 million.
Portugal thus renewed minimum financing costs. In the last comparable 10-year OT auction on July 10, Cristina Casalinho's agency issued 753 million euros, with an allocation rate of 0.51%, with demand exceeding supply by 1.58 times. In the last 15-year OT, on June 12, Portugal issued 625 million euros with an allocation rate of 1.052%, with demand exceeding supply by 1.63 times.
In terms of demand, OT maturing in June 2029 exceeded supply by 2.11 times, while OT maturing in April 2034 exceeded supply by 2.30 times.
"At yields European sovereign debt have reached unprecedented record lows, ”said Filipe Silva, asset management director of Banco Carregosa.
In particular, Portugal continues to benefit from the monetary policy of the European Central Bank and, with the threat of a recession hovering in the air, the possibility for central banks to move forward with new economic stimulus measures. ”The European Central Bank is expected to lower tomorrow interest rates and announce a new stimulus package to see if they can bring inflation back to 2%. Next week is expected a similar move by the Federal Reserve, cut rates, ”says the analyst.
“Portugal continues to benefit from low interest rates and is renewing its debt with yields lower prices, which has allowed the average cost to be lowered, ”he adds.
In the secondary market, 10-year debt yields this morning at 0.28%.
[Atualizado às 10h57]