Portugal pays lowest interest ever on 10-year government bond issues

Portugal’s treasury and public debt agency IGCP undertook two auctions of public debt at 10 and 15 years worth €705 million today.

The Agência de Gestão da Tesouria e da Dívida Pública (IGCP) set the lowest financing ever in terms of interest rates for the 10 and 15 year treasury bond issues at their lower rates than previous financing operations at 1.568% in the case of the 10 year bonds.

This was the lowest interest ever for 10-year bonds which will mature on the 15 June 2029, the previous record being set in May 2018 with an interest rate of 1.67%.

When bonds were issues at the beginning of the year, the IGCP supported an interest rate of 1.95%. At the last auction of debt in 10-year bonds held in November 2018 the rate was at 1.908%.

The rate that the ICGP led by Cristina Casalinho supported in the bond issue today (Wednesday) is below interest rates being practised in secondary markets where investors buy and sell securities they already own on the stock market.

The interest rate on treasury bonds that investors are buying and selling was at 1.606% today. In the primary market the previous lowest record ever was set in May at 1.67% when the IGCP issued €483 million in bonds.

The second was in July when it auctioned 10-year bonds with a rate of 1.727%.

Regarding the auction of bonds with a 15-year maturity on 18 April 2034, €295 million were put up for sale at 2.045%. The previous 15-year issue in July 2018 of €300 million had an interest rate of 2.257%.