The Treasury places 1,959 million in short-term debt and the interest offered by 9-month letters is close to 3%

Euskaraz irakurri: Altxor Publikoak 1,959 milioi euro saldu ditu hiru eta bederatzi hilabeterako letretan

He Spanish Public Treasury has placed this tuesday 1959 million euros in bills of three and nine months, with a demand by investors, including individuals, which has exceeded 6.3 billion euros, which is three times more than the amount awarded. Interviewed on eitb.eus, the lawyer Iker Ariznabarreta, from DUT Asesoría, explains the keys of the auction.

According to the bid data, in three-month letters, the Treasury has sold 509 million euros, at a marginal interest of 2.520%, higher than the previous 2.198%.

Demand for this type of debt has reached 2,204 million euros. In nine-month bills, Spain has sold 1,450 million euros. The interest applied has been 2.973%, also higher than the 2.839% of the January auction.

Demand for nine-month bills has been 4,161 million. In total, the Treasury has placed in the first auction of the week those 1,960 million euros, an amount that has been located in the middle part of the expected objective, which ranged between 1,500 and 2,500 million euros.

However, the auction ratio, which is the difference between the total requested by investors (6,365 million euros) and what was finally placed (1,959 million), has been very high, 3.2 times.

After Tuesday’s issue, the Treasury will hold a new bid on Thursday, in which it expects to sell between 5.5 and 6.5 billion euros in three types of medium- and long-term debt: seven-year bonds; others with a residual life of nine years and eight months; and others with a residual life of four years and five months.

Public debt issuances are three types depending on the return period or term to recover the investment:

There is three ways to buy public debt: from the headquarters of the Bank of Spain, the website of the Public Treasury and the banking entities:

In a context marked by the successive rises in interest rates by both the Fed and the European Central Bank, the Treasury has been increasing the yield offered by the purchase of debt and has even exceeded 3.5% in a bond issue 20-year government bonds. So far in 2023, purchases through the Treasury website from retailers have increased by more than 1.1 billion euros, which is triple all acquisitions in 2022.