The Public Treasury has captured this Thursday, in the last issue of July, 5,060.56 million euros in bonds and obligations of the State, in the expected medium range, and has done so by remunerating investors with higher interest in two of the three references auctioned, according to data published by the Bank of Spain.
On the day in which the Governing Council of the European Central Bank (ECB) will undertake the first rise in interest rates in the eurozone since July 2011, investors maintain their appetite for Spanish debt securities, since the combined demand of the three references auctioned this Thursday has exceeded 8,652 million euros, exceeding what was finally awarded in the markets.
In recent auctions, the Treasury has had to pay investors more for debt securities, coinciding with the rate hikes by the Fed and the announcements of increases in the price of money also by the ECB.
Furthermore, it comes at a time when the risk premium and yield on the 10-year bond are rising. Faced with this, the European Central Bank has already announced that the flexible reinvestment of bonds acquired during the pandemic that have matured will begin in July with the aim of containing, if necessary, risk premiums.
In this context, the body dependent on the Ministry of Economy has placed 1,130.85 million euros in 3-year government bonds, compared to a demand of 2,175.9 million, and the marginal interest has been placed at 1.437%, compared to at 1.043% offered in the last auction.
In 5-year government bonds, the Treasury has placed 1,535 million euros, also below the 2,685.24 million demanded by investors. In this case, the marginal return has been situated at 1.780%, compared to the interest of 2.367% of the previous issue.
Finally, in the 10-year State obligations, the Treasury has captured 2,394.71 million, compared to a demand of 3,791.73 million euros. The marginal interest has been placed at 2.550%, higher than the 2.468% of the previous auction.
In total, in accordance with the financing strategy, the Public Treasury maintains the net debt issuance forecast for 2022 at 75,000 million, practically similar to the figure for 2021 (75,138 million), while it forecasts that the gross issuance will be reduced by 10% compared to last year, up to 237,498 million euros.
As in recent years, the bulk of the expected gross issuance will be concentrated in Treasury bills and in government bonds and obligations.
Source: Europa Press
