Free Trial

/PORTUGAL AUCTION PREVIEW. The Instituto...>

PORTUGAL
PORTUGAL: /PORTUGAL AUCTION PREVIEW. The Instituto de Gestao de Credito Publico
(IGCP) re-opens the PGB 2.125% Oct-28 and PGB 4.1% Feb-45 Wednesday for an
indicative size of between E1.0bln-E1.25bln.
- BACKGROUND: There is considerable peripheral issuance this wk, Italy on
Tuesday, Spain on Thurs. Despite the E30bln target for ECB purchases, there has
been no significant decline in PSPP buying of PGBs. It was too low beforehand.
Portugal has already completed 35% of its 2018 funding target.
- RV/HISTORY: The 10Y Portuguese yield to Germany is at 118bp, its lowest for 8
years. It also trades 18bp below 10Y Italy, close to its 10 year best (-22bp in
January). The strong growth in Europe has lessened the concerns about credit
quality. In RV terms, it is the 5Y sector of the PGB curve that looks expensive
when valued to swaps. The 30Y PGB trades closer in value to 30Y Italy (making it
look less expensive). 
- RESULTS: The auction bidding deadline is at 1030GMT 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.