Demand for government savings bonds plummets for seven consecutive months

Demand for Portuguese savings bonds, known locally as ‘aforros’, fell for the seventh month on the trot according to data from the Bank of Portugal.

Issues of bond certificates fell in May to -€3.9 million. Despite the lowest level since November, it was the seventh consecutive month when subscriptions for new bond issues was below the amount of redemptions and reimbursements.

Since November last year €108 million has left the treasury when bonds matured with the accumulated value of the savings bonds having gone down to €33.96Bn by the end of May; now at the lowest level since August, 2023.

But families turning their backs on buying bonds is not limited to savings bonds. Demand for government treasury bonds has fallen for 31 months on the trot leaving a negative net balance for subscriptions.

By May, families had redeemed €96.6 million, the balance now standing at €10.38Bn — the lowest since August, 2016.