LISBON, Oct. 10 (Xinhua) -- Portugal placed 782 million euros in 10-year treasury bonds on Wednesday with the interest rate of 1.939 percent, according to the Treasury and Public Debt Management Agency (IGCP).
The interest rate was higher than the last comparable auction on Sept. 12, when Portugal placed 672 million euros with an interest rate of 1.854 percent.
The demand for the 10-year bonds was 2.78 times higher than the amount placed, compared to 2.32 times demand than the amount placed in the last comparable auction.
According to the director of asset management at Banco Carregosa, Filipe Silva, "it was an auction with a lot of demand, which demonstrates the interest of investors in the interest rate paid by these bonds."
"Nevertheless, it was a successful issue for the Portuguese state that once again managed to finance itself in the long run by paying a historically low rate for Portuguese risk. More importantly, Portugal issues long debt below the average cost of public debt, whose average rate is 3.85 percent," he said.
He said that the rise in interest paid on the last comparable auction was related to "a movement that follows the recent evolution of the European sovereign debt curve."
