The country took on short-term debt today, with 11-month issuance recording demand that was nearly four times higher than supply.
Portugal today financed itself with around €1,300 million in its second debt issuance this year.
The country allocated €788 million in seven-month Treasury Bills (BT), at a rate of 3.64%, with demand exceeding supply by 1.91 times.
In BT's 11 months, it recorded a rate of 3.43%, with a total amount of 500 million, with demand exceeding supply by 3.88 times.
“In the second T-bill auction of the year, Portugal deposited €1,288 million of short-term debt, of which €788 million of 7-month debt and €500 million of 12-month debt,” commented Felipe Silva of Banco Carregosa. .
“In the 7-month version the rate was 3.646% and demand exceeded supply by 1.91 times, and in the 11-month version the rate was 3.436% for 3.88 times demand. The interest rate curve remains inverted, meaning that short-term interest rates are higher than long-term interest rates, which It is reflected in today's auction. In light of the January Treasury auction, we saw a slight increase in the risk premium as the 7-month interest rate was higher than what was being paid at the time in the two-month and six-month auctions. The analyst said in a statement that risk premiums on sovereign debt rose In recent weeks, at a time when there is a lot of talk about lowering interest rates.
The European Central Bank noted that inflation continues on a downward path, but warns of the risks of too rapid a decline in interest rates, a factor that led to the increase in interest rates. He pointed out that the Portuguese curve will continue to follow the movement of the rest of European sovereign debt, and what is expected in the medium term is that the cost of national financing will decrease, when the central bank begins to reduce interest rates.
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