Tag Archives: 'debt'
The country auctioned he maximum it was aiming for, paying higher yields on the five- and 12-month T-bills than in previous operations with similar maturities.
The government will continue to issue T-bills “in the usual form” to guarantee that the conditions to return to the markets in the post-troika period are met. On the way to meeting the budgetary targets, the government released data that show an increase in tax receipts in May.
The yields on Portuguese sovereign debt were rising in all maturities this Thursday, one day after the country sold another €1.5bn in T-bills.
At this morning’s auction of six- and 18-month Treasury bills, interest increased to 1.041% and 1.603%, respectively. This operation took place on the same day that the Ministry of Finance announced that a troika delegation will arrive in Lisbon on Monday.
The Portuguese treasury auctioned €1.2bn in 18-month bills and €300m in three-month debt sending mixed signs. This is the first auction after the country’s international creditors gave it one more year to meet its budget targets.
In a report released Friday, the rating agency says that Portugal’s return to markets is a positive step but that economic and political risks still remain. Fitch also says that the country won’t gain full market access before the end of the bailout and will need additional funding support and a new programme.
Bailed-out Portugal has made a successful earlier-than-expected return to bond markets, with strong demand by foreign investors. Secretary of State for the Treasury Maria Luís Albuquerque said this was only possible because the country had met all the commitments taken on under its bailout programme.
Portuguese public debt is now the third highest in the European Union.
Prime Minister Passos Coelho wants Portugal to “grow faster than the average of the past 12 years in the coming ones”, by making the most of European funds and sustainable investments.
An official source at BES said demand was €3bn and the issue had been placed with 280 investors, mainly from the UK (38%) and Portugal (10%).