LISBON, March 14 (Xinhua) -- Portugal paid its lowest ever yields when issuing 1.25 billion euros (1.55 billion U.S. dollars) of 10- and 27-year treasury bonds on Wednesday, according to Portugal's debt management agency IGCP.
The longer-dated paper, maturing in February 2045, was significantly oversubscribed with a bid-to-cover ratio of 2.8. The issuance amounted to 275 million euros and paid an allotment yield of 2.8 percent.
The last time Portugal tapped the market so far along the curve was in July last year, paying out 3.977 percent.
Market commentators noted that Portugal paid a 2.78 percent yield in issuing 10-year bonds as recently as Sept. 2017. The fact that the 27-year bonds command more or less the same rate of interest shows just how much Portugal's credit worthiness has improved in the eyes of the market.
The latest issuance of 10-year notes paid an allotment yield of just 1.778 percent. In total, 975 million euros of debt due Oct. 2028 was sold, having been 1.7 times oversubscribed.
In February, Portugal sold 10-year notes paying 2.046 percent. That marked a hike on the previous issuance, from November 2017, which took a 1.939 percent coupon.
Portugal's finance minister, Mario Centeno, announced the results of the auction to parliament. "Today we placed ten and 27-year debt at the lowest interest rates not of the last week or the last year, but ever," he was quoted by the Portuguese Lusa News Agency as saying.
He added that "this is plainly and simply the result of us fulfilling and making Portugal's economic policy credible again."
