The demand for the “BT17JUL2026” (one year) auction reached 2.830 million euros, 2.83 times the amount placed, according to the page of IGCP – Agency for the Treasury and Public Debt Management on Bloomberg.
In the previous auction of BT with comparable maturity on May 21, IGCP placed 900 million euros at an average rate of 1.949% and demand reached 2.468 million euros, 2.74 times the amount placed.
For today, IGCP announced a 12-month BT auction with an indicative global amount between 1.000 million euros and 1.250 million euros.
Commenting on today’s auction, Filipe Silva, Director of Investments at Banco Carregosa, stated, “The market continues on a downward trajectory in short-term rates in an attempt to anticipate a 25 basis point rate cut by the European Central Bank, which if it happens, should be after the summer.”
“This potential decrease will depend on the evolution of the economy and the impact that tariffs may have on economic growth, especially since not all agreements are closed yet,” said Filipe Silva, emphasizing that “Portugal continues to be one of the countries with the lowest spread versus Germany and ends up benefiting from lower rates on its debt service.”
[Updated at 11:42]
