The high profitability of the latest auctions of Treasury bills and bonds is arousing the unbridled interest of retail investors. Below, we explain some keys to these securities issued by the Public Treasury in Spain.
Euskaraz irakurri: Altxor-letrak, bonuak eta obligazioak: zer dira, non eros daitezke eta zer errentagaritasun eskaintzen dute?
The public debt It has been the great protagonist in the Spanish State for several months. The attractive profitability that it offers in the short term has triggered the demand for letters, bonds and debentures by the retail investorsespecially from the middle of last year, which was when interest rates in the euro area began to rise.
Only last week there were requests for the amount of €300 million due to a flood of demand that has caused problems on the website of the Public Treasury, one of the channels to acquire bills, and queues at the Bank of Spain, where you can buy government debt securities in person. At the beginning of January the website received around 800,000 daily visits and last Thursday it registered around 5 million. Retail investors account for around 2% of the total demand for government debt.
Public debt issuances are three types depending on the return period or term to recover the investment.
Just a few months ago, the cost effectiveness of Treasury bills did not exceed 1% and Today it has stood at 2.813%. This figure contrasts with the 0.4 – 0.6% that Spanish bank deposits are giving; the European average is 1.5 – 2%.
There are three ways to buy public debt: from the headquarters of the Bank of Spain, the website of the Public Treasury and banking entities.
Source: Eitb
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