PORTUGAL T-BILL AUCTION PREVIEW: Portugal's debt.....>

PORTUGAL T-BILL AUCTION PREVIEW: Portugal's debt agency, Instituto de Gestao da

Credito Publico (IGCP) re-opens Jan 18, 2019 T-bill and issue a new 12-month Jul

19, 2019 T-bill for combined amount of E1.25-E1.75bln on Wednesday. 

- RV: Ask-yield on the Jan 18, 2019 T-bill is currently seen at -0.41%, close to

the bottom end of its 1-month range of between -0.354% and -0.531% and is +2.5bp

vs Eonia according to tradeweb. As for the new Jul 19, 2019 T-bill, according to

Tradeweb the grey market is indicating a mid-yield of -0.277% which is a pick up

of 2bp vs the May 17, 2019 T-bill and +8bp on spread to Eonia.

- HISTORY: For comparison at the last 6-month T-bill auction on May 16, IGCP

allotted E500mln at average yield -0.351% and covered 1.73 times. At the last

12-month T-bill auction, also on May 16, IGCP allotted E1.25bln at average yield

-0.272% and bid-to-cover of 1.65 times.

- REDEMPTION: There is a T-bill redemption of E2.937bln this week, therefore,

could leave net cash flow negative to the tune of E1.2bln which is seen

underpinning demand. 

- TIMING: Auction results are due to be announced around 0940GMT