Portugal cancels next week’s debt issue – Markets
The operation had the objective of issuing debt with two different maturities, with the shortest maturing in May 2022 (six months) and the longer maturing one ending in November of that same year (twelve months).
Last week, in a statement to Negócios, the IGCP had said that it would not change its strategy, nor the national debt calendar, after the State Budget (OE) and the anticipated legislative consequences were lost.
The institution referred that “the issuing capacity of the IGCP is not affected by the lead of the OE nor by the call for alteration” and that “there is a timetable that must be respected in what the communications to the market refer to”. Still, point out that “
the quarterly funding program published in early October has changed valid and, as usual, the IGCP can make adjustments.”Already this week, Portugal invested 1,000 million euros in a double auction of 10- and 16-year debt, on 10 November, with demand outstripping supply, but an increase in adjacent interest rates. This operation was not on the calendar and was announced by the institution a week before.
At the shorter maturity, the National Treasury placed 686 million euros at an interest of 0.314% in an operation whose term expires on October 17, 2031, which compares with a “yield” of 0.397% in the previous comparable auction. The demand for this issue exceeded the offer by 1.46 times, which represents a slight decrease compared to the previous auction (1.52).
In recent weeks, the agency has been active with several operations to be announced, despite the lead of the State Budget and the legislative changes that were called for next January 30th. In late October it announced the third debt swap in the last three months. The operation postpones the repayment of bonds for more than eight years.