LISBON, July 12 Portugal's debt agency said on
Friday it would only return to regular bond issuance in the
second half of 2013 "if market conditions are conducive."
It added, however, that it intends to hold regular treasury
bill auctions every month through year-end.
Portuguese bonds have sold off sharply in the past two weeks
as a political crisis erupted within the ruling coalition.
The crisis reignited this week after the president failed
to endorse a government reshuffle aimed at ending the rift.
Instead the president called on a cross-party commitment to exit
the country's bailout as planned in June 2014, followed by
Portuguese 10-year bond yields surged 53 basis points to
7.50 percent on Friday on the political concerns.
Despite the crisis, which has prompted concerns Portugal may
need a new bailout, the debt agency said the country's finances
were on a stable footing with all 2013 financing needs already
covered. It has begun to pre-finance 2014 financing needs in the
IGCP said it would issue a total of up to 8 billion euros of
treasury bills in the second half, with the first auction to be
held on July 17 of five- and 12-month series.