Portugal places 1.25 bln euros in treasury bills

Portugal placed 1.25 billion euros(1.37 billion U.S. dollars) in three and 11-month treasury bills on Wednesday.

The country's debt agency IGCP said the country issued 350 million euros in three month treasury bills and 900 million euros in 11 month bills.

The three-month titles were issued at an average yield of minus 0.012 percent, compared to a minus 0.108 rate on August 17, and demand was 3.43 times supply, compared with 1.96 times in the previous auction.

The 11-month titles were issued at a rate of 0.0006 percent, below the 0.007 percent rate seen two months ago, but demand over supply dropped from 2.31 times to 1.91 times.

Portugal issued 1.3 billion euros in three and 11 month titles in an auction in August, and in September issued 2.25 billion euros in six and 12 month treasury bonds, at rates of minus 0.033 percent and minus 0.014 percent, respectively.

Portugal is nearing a crucial credit review by DBRS on Friday, the only agency to grant the country investment grade.

Portugal emerged from a deep recession two years ago and has promised to cut its deficit to 1.6 percent of gross domestic product next year from this year's 2.4 percent, with growth rising to 1.5 percent from 1.2 percent.

The Socialist government's budget for next year focuses on recovering personal income and raising pensions after several years of harsh austerity, while raising indirect taxes to compensate and meet fiscal agreements with Brussels. Endit