Treasury Bills: Next Auction

A new opportunity for small investors wishing to purchase a portion of government debt. And these short-term securities have become the most sought-after investments among small investors who see them as a safe and affordable option for profitability.

Treasury bills were created in June 1987 when the book-entry market for government debt was introduced. They operate through an auction, which usually takes place on Tuesdays. In fact, the next appointments will take place in March of this year, the 6 and 12 month letters will take place on the 5th; and letters at 3 and 9 months on the 12th.

This year, the Treasury forecasts net funding requirements will be €55 billion, representing a reduction of ten billion compared to 2023, when they reached €65 billion. The estimated gross output will be €257,572 million, up 2% from 2023.

Minimum investment 1000 euros.

The minimum amount for each request is 1000 euros, however requests for a higher amount must be a multiple of this amount. That is, you cannot invest, for example, 1250 euros.

Additionally, it is important to keep in mind that Treasury bills are securities issued at a discount, so their purchase price may be lower or higher than the amount an investor will receive at maturity. Thus, the difference between the compensation cost of the Letter (1000 euros) and the price of its acquisition will be the profit received.

How to buy treasury bills

Those people who are interested in purchasing treasury bills must come in person to the Bank of Spain office, presenting their DNI (or other identification document), bank details of the account to which the interest will be credited, and amortization. Likewise, money for investment that can be paid by check or wire transfer.

They can also do so through the Treasury website or from financial institutions (banks or thrifts) or securities companies and agencies. If the transaction is carried out via the Internet, you will need to have a digital certificate. Likewise, it is worth remembering that the organization requires an advance deposit of 101% of the face value. That is, for a letter costing 1,000 euros, a total of 1,010 euros will be paid per header.

For their part, banks or securities agencies may also sell treasury bills, although it is advisable to be aware of possible fees charged by the institution.