The Public Treasury of Spain is holding the first debt auctions of the month of March this week, with an appointment on Tuesday and another on Thursday, coinciding with the meeting of the European Central Bank (ECB). In the first, on March 5, those interested in acquiring State debt will have the possibility of bidding for Treasury Bills. On this occasion, it will be Six and Twelve Month Letters.
The second auction, however, will be for bonds and obligations. Specifically, the Treasury will place five-year bonds, ten-year obligations and other obligations with a residual life of seven years and eight months. Investors will also be able to bid on other inflation-indexed fifteen-year bonds.
That same day the last meeting of the institution in charge of managing monetary policy in European countries will conclude, although changes in the planned dates for rate cuts are not expected to be announced after this meeting. According to the Treasury calendar, after these two bids, another one will be held on March 12, for bills of three and nine months; and another on the 21st, for bonds and obligations.
In February, remuneration increased due to monetary policy.
In its last Bill auction, the Public Treasury placed a total of 2,036.27 million euros in three- and nine-month bills, in the middle band of its objectives, and with higher rates in both references and with a demand that has tripled what was finally awarded, according to data from the Bank of Spain. Specifically, the Treasury has raised 440.87 million euros in three-month bills, compared to a demand five times higher (2,210 million euros), offering a marginal profitability of 3.740%, above the previous 3.538%.
In the auction of nine-month bills, the body dependent on the Ministry of Economy awarded 1,595.4 million euros, with requests of 4,050 million from investors, at a marginal interest of 3.504%, also above 3.492% former.
The auction on February 13, in which the Treasury had proposed to raise between 1,500 and 2,500 million euros, was held after the Governing Council of the European Central Bank (ECB) decided to maintain interest rates, so . that the reference rate for its refinancing operations remains at 4.50%, while the deposit rate remains at 4% and the lending facility rate at 4.75%.
Monetary policy decisions affect Treasury auctions, which in recent months have seen the remuneration offered to investors grow, in line with rate increases. This has caused interest in the purchase of debt to increase, especially in the case of the acquisition of Treasury bills by households.
