The Treasury sold 509 million euros worth of three-month paper at a marginal rate of 2.520%, higher than the previous 2.198%.
He Spanish treasury posted this Tuesday 1959 million euros in bills of three and nine months, with a demand from investors, including individuals, that has exceeded 6.3 billion euros, which is three times more than the amount allocated. Interviewed on eitb.eus, lawyer Iker Ariznabarreta, from DUT Asesoría, explains the Keys of the auction.
According to the bidding data, the Treasury sold 509 million euros in three-month letters, at a marginal rate of 2.520%, higher than the previous 2.198%.
The demand for this type of debt has reached 2,204 million euros. In nine-month accounts, Spain has sold 1,450 million euros. The interest applied is 2.973%, also higher than the 2.839% of the January auction.
The demand for nine month bills was 4.161 million. In total, the Treasury placed that 1,960 million euros in the first auction of the week, an amount that was in the middle part of the expected target, which varied between 1,500 and 2,500 million euros.
However, the auction ratio, the difference between the total requested by investors (6,365 million euros) and what was finally placed (1,959 million), was very high, 3.2 times.
Following Tuesday’s issuance, the Treasury will make a new offer on Thursday, expecting to sell between €5.5 and €6.5 billion of three types of medium- and long-term debt: seven-year bonds; others with a remaining life of nine years and eight months; and others with a remaining life of four years and five months.
The issuance of government debt is three types depending on the payback period or term to earn back the investment:
There is three ways to buy public debt: from the Bank of Spain headquarters, the website of the Public Treasury and the banking entities:
In a context marked by successive interest rate hikes by both the Fed and the European Central Bank, the Treasury has increased its yield on debt purchases and even issued more than 3.5% in government bonds in 20 years. So far, purchases through the Treasury website from retailers have increased by more than €1.1 billion in 2023, tripling all purchases in 2022.
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Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
