The Public Treasury has captured this Thursday 6,480.39 million in medium and long-term debt, with the highest interest in the four references issued and with returns of more than 3% in three of them, according to data published by the Bank of Spain . Investors continue to show interest in Spanish debt securities and the joint demand for all references has stood at 12,450.45 million euros, doubling the amount finally awarded in the markets.
Specifically, the Treasury has auctioned today 3-year government bonds, with a 2.80% coupon; 7-year State bonds, with a 0.80% coupon; 10-year government bonds, with a 3.15% coupon, and 15-year inflation-indexed government bonds, with a 0.70% coupon.
The next auction is March 7
With respect to 3-year State bonds, the agency has placed 2,139.27 million and has achieved a demand of 4,329.32 million, while the marginal interest has stood at 3,441%, compared to the previous 2,928% . Likewise, the Treasury has captured 1,475.05 million in 7-year State obligations, compared to requests of 2,770.05 million, and has done so at a marginal interest of 3,527%, compared to 3,212% in the last auction.
In 10-year State obligations, the Treasury has captured 2,363.89 million, compared to a demand of 4,373.90 million, and profitability has been placed at 3.773%, compared to the previous 3.17%. Finally, in 15-year inflation-indexed State obligations, the Treasury has captured 502.18 million, compared to requests of 977.18 million, and the marginal interest has stood at 1.176%, compared to 1.032 % past.
This new Treasury issue occurs at a time when individual investors are showing great interest in buying debt, mainly in the short term, given its high profitability, which has been growing since the beginning of 2022, especially in the case of the letters in the shortest term.
After this Thursday’s auction, the public body will return to the debt markets on March 7, with an auction of 6 and 12-month bills. It will be followed by an issue on March 14 of 3 and 9-month bills and another of State bonds and obligations on March 16, with which the month’s auctions will be concluded.
Two syndicated issues so far this year
So far this year, the Treasury has launched two syndicated issues. In the first, –a 10-year bond maturing in April 2033–, the public body issued an import of 13,000 million euros, with a demand of 86,133 million euros, the second largest in the institution’s history , thus obtaining an oversubscription of 6.6 times what was issued.
In the second, the Public Treasury issued 5,000 million euros in a new 15-year syndicated bond maturing on July 30, 2039, for which it has received a demand of more than 30,585 million euros, which reflects “the confidence of investors” in the Spanish economy, according to the Ministry of Economic Affairs and Digital Transformation.
In the presentation this month of the Treasury Financing Strategy for 2023, the Secretary General of the Treasury, Carlos Cuerpo, has already advanced that the organization will again resort to bank syndications for the issuance of certain references of State Obligations. Regarding the regular issues of Treasury securities, 48 ordinary auctions of Bills and Bonds and State Obligations are planned.
The public also expects the body to place around 3,000 million euros in ‘green’ bonds in 2023 through three issues, in line with the importation of operations carried out in 2022. To date, Spain has placed 8,200 on the market million euros in ‘green’ bonds and is expected to put around 20,000 million into circulation.
Treasury targets for 2023
Gross issuance by the Public Treasury this year will reach 256,930 million euros, which 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, the Treasury Bills are expected to provide net negative financing of 5,000 million, so the State bonds and obligations, together with the rest of the debts in euros and foreign currency, will contribute the remaining 75,000 million.