The IGCP has decided to use the scheduled auction window this week for a tap of PGB 2.125% October 2028, PGB 1.15% April 2042 and PGB 4.10% February 2045, with an indicative issuance range of EUR1.50-1.75bn. If the Portuguese Treasury issues the full amount offered, Portugal's year-to-date issuance would reach c.EUR5.8bn, equivalent to 41.4% of its total gross bond funding needs for FY24e (EUR13.9bn).
Tactical ideas for auctioned bonds:
- We like the 15-20Y area vs. the fly 10Y-30Y since it is offering an interesting pick-up above 40bp, which is not far from the peak reached in December in the 50bp area.