The fever continues, private investors have a new opportunity with the Spanish Public Treasury, which opens the July auctions this week, and will hold two bids, one for six- and twelve-month bills, and another for government bonds and obligations, with all the attention paid to the movements of the European Central Bank (ECB), which will undertake a new rise in interest rates this month.
Another increase in interest rates
The ECB is expected to hold its monetary policy meeting on July 27, and for the body to raise rates again, as confirmed this week by the president of the institution, Christine Largade.
According to the schedule provided by the Treasury, on July 4 Spain will offer investors six- and twelve-month bills, and on Thursday, July 6, government bonds and obligations. Specifically, it will auction seven, ten, and fifty-year bonds, and other inflation-indexed bonds with a residual life of four years and five months.
Maximum interest since 2012
The last time that Spain placed bills at six and twelve months was on June 7, and on that occasion the first denomination came out at a marginal interest of 3.392%, and the second, at 3.468%. In both cases, said interest reached maximums since 2012.
Likewise, in said bid, much of the demand once again came from private investors who, for months, have been buying Treasury bills for the profitability they offer as a result of the rise in interest rates.
According to the latest data from the Bank of Spain, Spanish households increased their investment in Treasury bills by almost 11,400 million euros (11,380 million) during the first four months of the year, reaching a volume of 13,206 million euros at the end of April .
