Lisbon, March 18, 2026 (Lusa) - Portugal's Treasury and Debt Management Agency (IGCP) on Wednesday auctioned €2.11 billion in Treasury bills (T-bills) for six and 12 months, exceeding the maximum indicative amount, at average yields of 2.141% and 2.307% respectively. According to the IGCP page on Bloomberg, €690 million was issued for six months at an average yield of 2.141%, and demand reached €1.94 billion, 2.81 times the amount auctioned.

The agency also auctioned €1.42 billion of T-bills with a 12-month maturity at an average yield of 2.307%. Demand stood at €2.225 billion, 1.57 times the amount auctioned.

On 21 January, the IGCP auctioned €1.25 billion, the maximum indicative amount, in 12-month T-bills at an average interest rate of 2.026%. The IGCP had announced two Treasury bill auctions for Wednesday, for six and 12 months, with a global indicative amount between €1.75 billion and €2 billion.

Commenting on the auctions, Banco Carregosa investment director Filipe Silva said that "interest rates rose in both terms".

This result occurs amid political and geopolitical uncertainty. The worsening conflict in Iran has contributed to rising oil prices, leading to upward revisions of inflation outlooks," he said, adding that "this framework could force central banks to maintain a more restrictive stance, or even raise interest rates again throughout 2026".

Filipe Silva stressed that, as a "consequence, sovereign and corporate debt yields have been rising in both the short and long term, and should continue to adjust depending on the conflict's evolution and future inflation outlooks".

Treasury bills are short-term public debt securities, up to one year, which allow the state to obtain financing more flexibly for treasury management.

MC/LYT // ADB.

Lusa