The first bond issue of the year resulted in the state issuing 1,000 million euros at 9.5 years for 3.2%, a price 1.2 times higher than what the state paid in June for a similar issue.
The Treasury and Public Debt Management Agency (IGCP) issued this Wednesday 1,000 million euros at nine and a half years at a price of 3.172%, through the OT 1.65% 16jul2032 bond line .
The auction held this morning had a demand 2.34 times higher than the offer and marked the first Treasury bond issue of the year. The price the state paid was in line with the 3.2% yield that the bonds were trading at yesterday evening.
In the last issue with similar characteristics, which took place on June 8th of last year, the State financed itself with 750 million euros through the OT 0.3% 17Oct2031 bond line, for which it paid 2.68%.
It should also be recalled that in the last issue of 2022 Treasury Bonds, through a nine-year auction on October 12, the yield of the operation was 3.23% and ended with the Republic financing 651 million euros.
In the space of eight months, the price for Portugal to finance itself in the nine and a half year debt market increased 49 basis points, as a result of the rise in interest rates and the European Central Bank’s monetary policy to curb the rising inflation rate in the Eurozone.
According to the Republic’s financing program for 2023, and already accounting for the 1,000 million raised this Wednesday, Portugal still has planned to issue around 19 billion euros in Treasury Bonds and Medium Term Notes (MTN).
