Demand for the latest Treasury issue rises to 87,000 million


Strong interest from investors allows the agency to place 13,000 million in a ten-year syndicated auction

Investors are, almost literally, eating Spanish debt. The Treasury issued a new 10-year syndicated bond loan for 13,000 million euros on Wednesday, the second largest issue in its history in terms of volume. Something that has arisen thanks to the fact that demand has exceeded 87,000 million euros.

Syndicated placements are operations conducted outside of the official issuance calendar, with the Treasury hiring several banks to conduct them. In the case of Wednesday’s, Barclays, BBVA, Citi, Credit Agricole CIB, JP Morgan and Santander led the way.

The demand data reflect the good moment in the market when the State resorts, among other things, to finance its expenditures. The record for ‘requests’ is still held by the April 2020 syndicated offering, which reached an unprecedented demand of EUR 97,000 million, just after the European Central Bank (ECB) announced its anti-pandemic asset purchase program announced.

As emphasized by the Ministry of Economy, this Wednesday’s placement “reflects the very good access to the capital markets and the confidence of international investors in the Spanish economy”.

This good progress allows us to anticipate positive prospects for the Treasury to meet its target of spending some €70,000 million net this year, despite experts indicating that the State will have to absorb higher costs as a result of the rise in interest rates.

In any case, appetite seems to be picking up despite a macroeconomic environment that is also more favorable than a few months ago, mainly thanks to moderation in inflation and a warmer-than-expected winter.

This improvement in prospects affects not only Spain, but also the rest of Europe. Germany, for example, has also managed to avoid recession and is starting to show signs of optimism. The latest was business confidence, which improved for the fourth consecutive month in January. The so-called Ifo index that keeps track of statistics stood at 90.2 points, compared to 88.6 last month. It is the highest value since June 2022.

This data, which should have boosted stock markets, is being ignored by investors, who prefer to run a “healthy collection of benefits” after the strong gains since the start of the year.

In fact, some analysts point out that the best macro data on record has restored caution to the market, given the prospect of the ECB having free rein to raise its reference rates further. In this sense, ECB President Christine Lagarde reiterated on Tuesday that the main objective of the body is the fight against inflation.

Within the national prosecutor’s office, the Ibex lost positions, with Telefónica (-2.57%), BBVA (-1.93%), Logista (-1.31%), Enagás (-0.92%), Ferrovial (-0 .84%) and Cellnex (-0.79%). %) leads the falls. Positive were Amadeus (+2.45%), IAG (+1.92%), Sacyr (+1.83%), Aena (+1.46%), Solaria (+0.90%), ACS (+ 0.52%), Naturgy (+0.04%) and Inditex (+0.04%).

Source: La Verdad


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