AUCTION PREVIEW: The Portuguese Debt.......>

PORTUGAL: AUCTION PREVIEW: The Portuguese Debt Management Office will come to

market on Wednesday for a combined E0.75-1.0bln. On offer are the new 2.125%

Jun-29 PGB, and the re-opened 2.25% PGB Apr-34 PGB. 

- HISTORY: The results of the last auction of the above bonds is below: 

2.25% Apr-34: average yield 2.26%, cover 2.79x, on 11/07/18.   

- BACKGROUND: The current PGB 10yr benchmark currently trades at 1.627%, down

from a high 1.837% at it's syndication on Jan 11. 

The 2.25% Apr-34 PGB currently trades at a yield of 2.085%, down from YTD highs

at 2.403% on Jan 8.

The Portuguese economy has stayed robust relative to Eurozone peers of late but

still had it's 2018 GDP growth forecast downgraded for 2.4% to 2.3%, meanwhile

the growth forecast for 2019 remained unchanged at 1.8%. Despite the modest

growth, Portugal's Debt-GDP ratio is still the 3rd highest in the Eurozone at

120%.   

- TIMING: Results are due shortly after the auction closes at 1030GMT.