Portugal pays 25 percent less than a month ago to place its debt to one year

Portugal managed to place today 1,610 million euros in debt to a year in exchange for an interest rate of 3.65 percent, 1.3 percentage points from just last month, which amounts to a proportional reduction of 25 percent.

According to data provided by the Treasury Luso, also sold another 382 million euros in letters to four months with a yield of 2.17 percent, far from the 3.84 percent paid in early January at the last auction of similar characteristics.

Thus, Portugal, the financing still relies on international aid requested last year had managed to get a total of 1,992 million euros, almost the maximum, which was 2,000 million, with a significantly lower penalty confirming the positive trend their short-term auctions this year.

The 2.17 percent interest rate at which today placed its shares to four months is, in fact, the lowest rate paid by the Treasury Luso since November 2010, when a debt auction three months paid a penalty of 1 81 percent.

The demand to buy the securities lusos to four months was more than six times oversubscribed, while in the case of letters a year demand supply multiplied by 2.5.

The success of issue in line to twelve months is also a nod to the intentions of the Portuguese Government, which plans to auction debt with a longer growing period, up to 18 months.

The aim of the conservative government Luso with this policy is to convince investors, analysts and rating agencies that are able to return to long-term market-ie, auction obligations with a maturity exceeding two years in the second half of 2013.

Since the rescue request of the European Union and the International Monetary Fund in April 2011, Portugal issued only short-term debt as 78,000 million euros provided by international institutions are intended to cover their long-term financial needs .

Investors, analysts and rating agencies do not believe that Portugal can achieve this objective, and based their predictions on the behavior of their obligations in the secondary market, where people buy and sell the securities purchased in public auction, in which rates are to regarded as intolerable.

His ten-year bonds traded in the secondary market today to 12.5 percent at five years were sold to 15.8 percent two years were required for them a return of 11.8 percent.

These interests, however, are far from the highs reached in late January, when the debt surpassed ten years Lusa 17 percent at five years 22 percent two years 21 percent.