Portugal to issue €1.750Bn in 4,18 and 21 year sovereigns

 In Bonds and Gilts, Economy, News

Portugal’s treasury and debt management agency returns to the markets on Wednesday with a triple auction of treasury bonds with maturities of between four, 18 and 21 years.

The IGCP, which manages Portugal’s debt and financing needs, states that the objective is to raise up to €1.750Bn.
The Agência de Gestão da Tesouraria e da Dívida Pública (IGCP), led by Miguel Martins will auction bonds which mature in October, 2028 (2.12%), April 2042 (1.15%), and February 2045 (4.1%), for a total amount of between €1.5Bn and €1.750Bn.
The yield on 10-year bonds is trading slightly over 3% at a time when discussions in Europe centre around an decrease in interest rates, but also statements from the president of the European Central Bank (ECB), Christine Lagarde, has dampened optimism regarding sudden cuts in interest rates.
However, Lagarde said that the ECB saw the possibility of cutting interest rates this summer. On Thursday last week the IMF warned central banks of the risk of inflation by rapidly cutting interest rates, adding that cuts should only happen in the second half of the year.
Last week, the Portuguese treasury issued short-term bonds in its first bond issue of 2024, raising €1.9Bn through three auctions of treasuries that saw above offer demand.
According to the government’s financing programme for 2024, the Portuguese Republic expects to rise €13.9Bn in financing through bond issues, which will provide around 67% of Portugal’s financing needs.