#Portugal #places #million #debt #eleven #months
The IGCP managed to place 1,580 million in debt for three and eleven months today. The agency had announced a double auction of BT for three and 11 months, with an overall indicative amount between 1,250 million and 1,500 million euros.
Portugal today issued Treasury Bills and placed 1,580 million euros in short-term debt, of which 735 million euros in three-month debt and 845 million euros in eleven-month debt.
In the three-month issue, the coupon interest rate was 3.73% and demand exceeded supply by 2.12 times, making this the first auction of the year for this maturity.
In the eleven-month issue, the rate was 3.44%, which compares to the 3.443% obtained in the March auction. Demand totaled 2,115 million euros, 2.5 times the amount placed.
The IGCP – Treasury and Public Debt Management Agency had announced a double auction of BT for three and 11 months, with an overall indicative amount between 1,250 million and 1,500 million euros. Therefore the placement exceeded the upper amount of the range.
Banco Carregosa’s Investment Director, Filipe Silva, says that “we continue to have an inverted interest rate curve regime, which means that short-term rates are higher than long-term ones, which is why the 3-month auction has a higher rate than the 11-month rate”.
“The national risk premium has been aligned with the movements of the remaining core sovereign debts. In recent weeks we have not had major variations in short-term debt”, adds the Carregosa specialist.
“The European Central Bank should begin the process of lowering interest rates in June, as economic data is in line with its expectations. Changes beyond this date will be evaluated at each meeting. If the trend continues, it is likely that we will see a decline in short-term debt risk premiums, not only in Portugal but also in the other Eurozone countries”, argues Filipe Silva.
