This Thursday’s public treasury auction ended with 7,028.55 million euros placed in medium and long-term debt. In this second issue in July, the purchase of debt from the State has been made with higher interest rates, with 50-year obligations reaching a remuneration of almost 4%.
Spanish state debt continues to be successful among investors after the rise in interest rates announced two weeks ago by the European Central Bank (ECB), while the United States has decided to maintain them after a series of previous increases.
The bonds auctioned are indexed to inflation and start at 4 years and 5 months, with a coupon of 0.65%. 7-year bonds have also been offered, with a 0.80% coupon, and 10-year bonds, with a 3.55% coupon. Finally, the highest range has been 50-year bonds, with a coupon of 1.24%.
The joint lawsuit does not duplicate what was awarded
Regarding the State obligations indexed to inflation with a residual life of 4 years 5 months, the agency has placed 525.76 million and has achieved a demand of 860.77 million, while the marginal interest has been at 1.111%, higher than the previous 0.671%. In 7-year State obligations, the Treasury has captured 2,126.37 million, compared to a demand of 3,051.38 million, and profitability has been placed at 3,343%, higher than the previous 3,082%.
In 10-year State obligations, the Treasury captured 2,790.45 million, compared to a request of 4,115.59 million euros, with a marginal interest of 3.562%, higher than the 3.556% of the last auction. Finally, the Treasury has placed 1,585.97 million euros in 50-year State bonds, above the 1,990.97 million requested, with a marginal interest of 3.904%, much higher than the 2.889% of the previous bid.
Following this issuance, the Treasury will return to the debt markets on July 11 with an auction of three- and nine-month bills and another on July 20 for government bonds and obligations.
On Tuesday he placed 5,268 million, raising the interest offered
In the previous auction, held last Tuesday, the Treasury placed 5,268.51 million euros in six- and twelve-month bills, within the expected medium-high range, and did so by offering higher yields in both cases and above 3 0.6%
All this in a context in which the Governing Council of the European Central Bank had two weeks ago to raise interest rates by 25 basic points, as the market consensus took for granted, so that the reference rate for its of refinancing operations has stood at 4%, while the deposit rate already reaches 3.50% and that of the loan facility 4.25%.
For its part, the United States Federal Reserve (Fed) unanimously maintained interest rates in the target range of between 5% and 5.25% after the ten increases undertaken since March 2022. But the president of the ECB, Christine Lagarde, already detected this week that inflation in the euro zone is too high and will remain so for too long, noting that “it is unlikely” that it can be declared in the near future that interest rates have peaked.
Treasure Goals 2023
The gross issuance by the Public Treasury will be 256,930 million euros this year, which represents an increase of 8.2% compared to the estimate for 2022, 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.
