Free Trial

/AUCTION PREVIEW. Portugal's debt..........>

PORTUGAL
PORTUGAL: /AUCTION PREVIEW. Portugal's debt agency, the Instituto de Gestao de
Credito Publico (IGCP) re-opens the 10Y benchmark 4.125% Apr 2027 OT on
Wednesday for an indicative size of between E0.75bln-E1bln. 
- BACKGROUND: PSPP purchasing of PGBs seemingly suffers from from proximity to
the 33% issuer limit and so any net issuance kind of has 33% pre-sold. Today's
offering is not a lot of duration and there are E43bln of Eurozone redemptions
on Thursday. Friday sees S&P update its rating on Portugal.
- RV/HISTORY: Portugal's spread compression to Germany was immense from Apr to
Jul but this has stalled at around 250bp. However, the market has done better
than Spain recently as the credit story in Portugal is improving rapidly. There
is a good chance that S&P's changes its outlook to positive from stable on
Friday. This year, the average bid-cover ratio in Portugal at 10Y has been 1.79x
and at the last auction on Jul 12 the auction yield was 3.09%, today's yield is
a less generous 2.79%.  
- RESULTS: The auction bidding deadline is at 0930GMT and auction results are
announced around 15 minutes after that.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.