The more restrictive monetary policy of the European Central Bank (ECB) continues to feed the profitability offered by the State debt. Thus, the Spanish Public Treasury has once again raised the rate offered in Bills at six and twelve months maintained this Tuesday, the first of July. Specifically, the one-year government paper has reached a marginal interest rate of 3.804%, the highest level since July 2012, in the midst of the debt crisis.
According to the bid data, in twelve-month bills, the Treasury has sold 4,237 million euros to investors, at a marginal interest of 3.804%, 9.7% more than in the previous bid held in June, when the profitability stood at 3.468%. Likewise, in six-month bills, the import awarded was 1,030 million euros, with a yield of 3.629%, an interest that is also above the previous 3.392%.
Demand from investors, many of them individuals, has reached 7,827 million euros. Also, the amount placed today has been located in the almost high part of the Treasury’s objective, which ranged between 4,500 and 5,500 million euros. In addition to today’s bid, the other Treasury will appeal to the market again on Thursday, and in this case, it will have seven-, ten-, and fifty-year bonds, and inflation-indexed bonds with a residual life of four years and five months. The objective of the Treasury is to capture in this bid between 5,750 and 7,250 million euros.
This increase in the profitability obtained by the short-term government debt is motivated by the latest rise in interest rates by the European Central Bank (ECB), which placed interest rates at 4% and the facility rate deposit at 3.50%, as well as the expectation that the body will raise them again in the July meeting, up to 4.25% and 3.75% respectively.
With these returns, the Spanish State is once again paying its debt at the levels of the debt crisis that hit the European Union in the summer of 2012, although on this occasion investors do not question Spain’s ability to pay.
