This new issuance occurs at a time when individual investors are showing great interest in buying debt, mainly in the short term
The Public Treasury has placed this Tuesday 4,840.34 million euros in bills for six and twelve monthswithin the expected medium range, and it has done so by offering returns in both cases above 3%, according to data published this Tuesday by the Bank of Spain.
The improvement in the interest rates offered, in line with the latest increases in interest rates by the ECB, has maintained the investor appetite of the markets for Spanish securities, given that the joint demand for both references has almost doubled what was awarded, cwith a total demand of 8,247 million euros.
Furthermore, this new Treasury issue comes at a time when individual investors are showing great interest in buying debtmainly in the short term, given its high profitability, which has been growing since the beginning of 2022, especially in the case of shorter-term bills, and in contrast to the low remuneration of bank deposits, which have not yet taken off.
Specifically, the Treasury has placed 803.28 million euros in six-month billsfaced with a demand of almost 3,000 million euros, and has offered a marginal return of 3.005%, slightly below the 3.164% of the previous issue.
In the auction of 12-month bills, the agency under the Ministry of Economic Affairs has awarded 4,037.06 million euros, closer to the requests for 5,299 million by investors, and the marginal interest has been placed at 3.169%. , also below the previous 3.335%.
It will return to the markets on Thursday
This Thursday the Treasury will celebrate a new auction of government bonds and obligations –including a reference to the so-called ‘green bonds’–, in which the public body expects to award between 5,500 million and 6,500 million euros.
Specifically, it will auction 3-year government bonds, with a coupon of 2.80%; 10-year State bonds, with a 3.15% coupon; 15-year inflation-indexed government bonds, with a 0.70% coupon; Government bonds with a residual life of 19 years and 3 months – and ‘green’ bonds, with a 1% coupon.
For these auctions, the marginal interest in past issuances stood at 3.441% for 3-year government bonds; at 3.376% for 10-year State obligations; at 1.176% for 15-year inflation-indexed government obligations and at 3.601% for ‘green’ bonds.
The Treasury will thus reopen for the first time this year 2023 the auction procedure for the ‘green’ bond, which was first issued in September 2021 and has become a structural component of the Treasury’s financing strategy.
From the public body it is expected new reopenings of the ‘green’ bond in 2023 to contribute to the financing of Spain’s commitments with the ecological transition
Treasury targets for 2023
Gross issuance by the Public Treasury this year will be 256.930 million euroswhich represents an increase of 8.2% compared to the estimate for this year, due to the rise in interest rates.
For its part, the net indebtedness of the Public Treasury in 2023 will remain at 70,000 million. Breaking down by type of instrument, it is expected that Treasury Bills provide negative net financing for 5,000 millionTherefore, the State’s bonds and obligations, together with the rest of the debts in euros and foreign currency, will contribute the remaining 75,000 million.