Portugal issues €1.131 billion in new 10- and 17-year debt at higher interest rates

Portugal today issued Treasury Bonds for a total amount of €1,131 million, divided between €621 million in 10-year bonds, with a demand of 1.57 times, and €510 million in 17-year bonds, with a demand of 1.74 times.

The 10-year bond issue's interest rate was 3.059%, slightly higher than the 3.003% recorded at the June auction. The 17-year bond issue's interest rate reached 3.637%, also higher than the 3.34% recorded at the April auction.

Filipe Silva, Investment Director at Banco Carregosa, commenting on Treasury Bond issuances, says that "the evolution of Portuguese sovereign debt throughout 2025 has highlighted the country's macroeconomic stability. The yield curve has stopped showing inversion in shorter maturities and has returned to a positive slope, typical of markets where investors demand an additional premium for longer-term financing."

"The Portuguese Republic's rating was recently revised upwards by S&P, from A to A+, with a stable outlook, reflecting the economy's resilience, a moderate growth trajectory, and the gradual reduction of external vulnerability," highlights Filipe Silva.

"The rise in interest rates in both auctions suggests that the market anticipates the possibility of the ECB reversing part of its current monetary policy to address potential inflationary pressures in the medium term. Risk factors that could influence markets in the coming months include political uncertainty in France and new trade and tariff balances at the European level, which may not yet be fully reflected in debt prices," warns Banco Carregosa's Investment Director.

In 10-year Treasury Bonds (with maturity date in October 2035), the Yield was set at 3.059%, the amount placed was 621 million and demand exceeded supply by 1.57 times.

In the issuance of 17-year Treasury Bonds (with maturity date in April 2042), the coupon interest was 3.637%, the amount placed was 510 million and demand exceeded supply by 1.74 times.