The Public Treasury has placed this Tuesday, June 13, 2,069.96 million euros in 3 and 9-month bills at a higher marginal interest rate than in the last auction and with high demand. According to the auction data, collected by Efe, the Treasury has sold 529.74 million euros in 3-month Letters with a marginal interest rate (the highest that the State has paid in the bid) of 3.263%.
In the case of 9-month bills, the Treasury has placed 1,540.22 million euros at a rate of 3.490%. In the last auction held in May, the interest on the 3-month debt was 3.090% and in the 9-month auction, 3.222%. In the bid on Tuesday, the volume placed was within the high range of the expected target by the Treasury, which expected to place between 1,500 million and 2,000 million euros. The demand, as usual, has exceeded the offer and in the case of 3-month bills, this has been almost four times higher than the offer, while in the 9-month bills, purchase requests have been somewhat more than double.
In recent months, these short-term sovereign debt issues have generated high interest from retail investors. According to the latest data available from the Bank of Spain, at the end of the first quarter of the year, Spanish households had 10,847 million in Treasury bills, 9,000 million more than in December 2022 to another new debt auction in which they offer investors bonds three-year bonds, 15-year bonds, and other bonds with a residual life of five years and four months.
A month marked by the issuance of a syndicated bond
The Treasury issued 13,000 million in the auction and received a demand for more than 85,133 million euros, one of the highest registered by the agency in its history. The bond issued last Wednesday matures on October 31, 2033 and has a coupon of 3.55%. The yield has been located at 3.556%, equivalent to 10 basic points above the real reference to 10 years, with a shorter maturity in April 2033.
The Department headed by Nadia Calviño has emphasized that this issue reflects the “confidence” of investors in the development and evolution of the Spanish economy, which is also shown in the “positive evolution” of the Spanish risk premium, which has dropped in recent days and is below 100 basis points, according to Europa Press.
Issued almost 60% financing program
The Treasury has already issued 141,288 million euros, 58.8% of its medium and long-term financing program for 2023. The average life of the State debt in circulation reaches 7.92 years and the average cost of Treasury securities portfolio stands at 1.938%. In total gross issuance by the Public Treasury this year will be 256,930 million euros, 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.