Portugal’s State borrowing costs have hit a pleasing new low with a tranche of ten-year bonds costing taxpayers under 1.3%.
€1.25 billion of debt was sold at the lowest interest rate yet, with the years of recession and high rates now a thing of the past - until the next one.
The State agency that issues bonds, the 'Agência de Gestão da Tesouraria e da Dívida Pública' (IGCP), issued €388 million of seven-year bonds at an interest rate of 0.763%, with demand surpassing supply by 2.52 times.
The €862 million 10-year issue was sold at an interest rate of 1.298%, the lowest ever. The issue was 1.6 times oversubscribed.
The last issue of 10-year debt was a month ago and set a record low, which has just been beaten.
The amount of State borrowing planned for 2019 is expected to be around €8.6 billion.