Lisbon, July 8, 2026 (Lusa) - Portugal's Treasury and Public Debt Management Agency, IGCP, issued €1.262 billion in Treasury Bonds on Wednesday, maturing in approximately 10 and 16 years, with interest rates of 3.439% and 3.838%, respectively.
According to the IGCP, €703 million was placed in ‘OT 3.25% 13Jun2036’ (maturing on 13 June 2036) and €559 million in ‘OT 1.15% 11Apr2042’ (maturing on 11 April 2042).
For the shorter-term issue, the rate was 3.439%, and demand exceeded supply by 2.38 times.
For the longer-term issue, the rate reached 3.838%, with demand exceeding supply by 2.01 times.
The IGCP had estimated an indicative amount of between €1.25 and €1.5 billion.
At the previous OT auction, held on 10 June, the IGCP placed €1.078 billion over maturities of approximately nine and 18 years at interest rates of 3.342% and 3.894%, respectively.
Thus, for the shorter maturity (nine years and four months), €636 million was placed in ‘OT 0.9% 12Oct2035’ (maturing on 12 October 2035) at a rate of 3.342 per cent, with demand reaching 2.04 times the amount placed.
For the longest maturity, of 18 years and eight months, the IGCP auctioned €442 million in ‘OT 4.1% 15Feb2045’ (maturing on 15 February 2045) at a rate of 3.894%, with demand exceeding the supply by 2.33 times.
In a comment sent to the Lusa news agency, Filipe Silva, Investment Director at Banco Carregosa, noted that the interest rate on 10-year bonds, 0.013 points higher than that seen for similar maturity at the June auction, reflects “some stabilisation in the intermediate segment of the yield curve and still solid demand for Portuguese debt”.
For the 16-year bond, the rate stood at 3.883%, up from 3.637% in the comparable September 2025 auction.
Filipe Silva noted that long-term rates “continue to reflect a higher level of uncertainty regarding the evolution of inflation, the impact of energy prices and the future trajectory of monetary policy by the major central banks”, compounded by the impact of geopolitical instability on debt markets.
“In this context, the rise in the 16-year yield does not necessarily reflect a specific deterioration in Portugal’s credit risk, but rather an adjustment to the broader environment of higher interest rates, greater macroeconomic uncertainty and a higher demand for a term premium,” he added, emphasising that demand remained healthy.
“Appetite for Portuguese government debt remains solid, albeit at more demanding yield levels,” concluded the investment director at Banco Carregosa.
JO/ADB // ADB.
Lusa
