LISBON: Portugal issued 1.112 billion euros of three- and nine-year bonds at an auction on Wednesday, below the maximum amount offered, as yields rose from last year.
State debt agency IGCP sold 500 million euros worth of bonds maturing in June 2020, and 612 million of July 2026 bonds, with the total coming slightly short of the upper band of its offer range of between 1 billion and 1.25 billion euros.
The allotment yield on the longer bonds rose to 3.950 percent from 3.027 percent in the previous auction of a similar maturity in November while the yield on the three-year bonds was 1.216 percent. The IGCP has not sold three year bonds recently.
Portugal's bond yields rose sharply in the past few months on the back of, together with other European bond markets, on the back of political uncertainty and inflationary expectations in the United States.
Demand in the auction outstripped the amount placed by 2.71 times on the shorter bond and 1.79 times on the longer bond.
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