Portugal issued more bonds today on the international market, raising €3 billion maturing in 2014. According to Reuters the demand saw an oversubscription to €9.5 billion.
The yield of this issue is currently at 4.98%, according to Bloomberg, having reached a maximum of 5.02% during the morning.
"Demand was strong, more than triple the supply," said the director of asset management at Banco Carregosa, Filipe Silva, adding that that "the recent decline in rates and risk was an opportunity put to good use by the Government. For investors the profitability offered also turns out to be very attractive."
It was the first time since May last year that Portugal has issued 10 year debt when the govenment committed to a rate of 5,669%.
The last bond sale was in early January this year when the state issued 5 year bonds totalling €3.25 billion at a rate of 4,657%, creating a demand of €11.2 billion.
With today’s placement, the treasury should have secured funds to meet the country’s financing needs for 2014 and part of 2015.
"The issue will help Portugal increase its liquid reserves and help in part to pre-fund some of its needs in 2015," said analysts at Société Générale.
