MADRID, October 8 (EUROPE PRESS) –
On Tuesday, the National Treasury placed €1,885.43 million in a new auction of three- and nine-month bills, within the expected average range, and did so by increasing the proposed yield in three months and reducing the yield quoted in nine months. lows from more than a year and a half ago, according to data published by an agency dependent on the Ministry of Economy.
Investor demand for Spanish debt securities remained strong as it approached 4.490 million euros, more than double the amount finally received in the markets at the third auction in October.
In particular, the agency dependent on the Ministry of Economy issued three-month bills for 468.981 million euros compared to the requirement of 1,554,058 million euros, and the marginal profitability was 3.067, which is higher than the previous 2.860%.
For its part, it paid €1,416.449 million in nine-month bills, below claims of €2,931.924 million, and the marginal return was reduced to 2.848%, at least for more than a year and a half (January). 2023), and below 3.027% of the last auction.
HOUSEHOLDS CONSOLIDATED AS THE LARGEST CURRENCY HOLDERS
Monetary policy decisions affect Treasury auctions, which have seen rewards offered to investors rise in recent months in line with rising interest rates. This has led to increased interest in debt purchases, especially in the case of households purchasing Treasury bills.
In fact, according to data published by the Bank of Spain and collected by Europa Press, households and private non-profit institutions serving households (Isflsh) rose from 1.826 million euros in treasury bills until the end of 2022 to 27.353 million in July. 2024 – latest data available – consolidated as the largest holders of this type of short-term debt.
However, now, with interest rates falling after two years of increases, the Treasury is reducing the rewards offered to investors at recent auctions.
GROSS EMISSIONS IN 2024 257,572 MILLION.
In total, the gross issuance planned for this year will amount to EUR 257.572 million, 2% higher than in 2023 due to increased amortization, and the bulk will be covered by the issuance of medium- and long-term instruments with the aim of maintaining the average duration of the public debt portfolio.
For its part, the Treasury’s 2024 fiscal strategy calls for new funding needs of about $55 billion this year, representing a $10 billion reduction from 2023.
As part of the Ministry of Finance’s strategy for 2024, it is planned to again resort to syndication to issue separate certificates of state obligations.
Another goal for 2024 will be to maintain a diversified investor base and commit to issuing green bonds as a building block of the financing program, thereby strengthening the sustainable finance market.