Portugal achieves new record low in bonds market
Portugal is continuing to benefit from exceptional conditions in the bond market thanks, in part, to the current European Central Bank policy.
The Portuguese treasury succeeded in getting €1Bn finance on the international debt market by issuing 10-year and 15-year bonds for which it payed the lowest interest rate ever.
In its issue of 10-year treasury bonds, the IGCP issued €600 million to investors who demanded an interest rate of 0.254%, almost half that they had paid on the previous comparable auction (0.51%), which was held in July.
Regarding 15-year bonds, the Government managed to get financing worth €400 million at an interest rate of 0.676 which compares extremely favourably to the 1.052% paid in June.
In both cases market demand for Portuguese debt was twice the amount on offer which also helps to explain the success of the operation completed by the team led by Cristina Casalinho, the President of the IGCP (The Portuguese Treasury and Public Debt Management Agency).