increased interest individuals by Public debt Given the negligible profitability offered by bank deposits despite the rise in official interest rates amazing for this week public treasury and for Bank of Spain. These are two of the establishments where titles can be purchased – on the web or in person, respectively – in the new State issues. other, more expensive For higher commissions, one is to place an order through. bank, agency or brokerage firm.
Securities purchasing service Treasury website it was thursday inoperative for a few hours, Centre Bank of Spain registered Queues lately. In recent auctions literatureinterest reached close to 3% up to nine months and savers want to take advantage of it. Faced with this profitability, the new deposit average interest rate of banks 0.7% in November, the latest data available. Next February 7 while there are new issuances of six- and 12-month securities, February 14th There will be securities placements every three and nine months.
Treasury sources explain that it has been decided to disable the securities buying site for a few hours until the start of stock trading. high trading volume registered recently. They add that it is necessary to guarantee the correct one. sending information to the Bank of Spain confirm data. However, they explain that no one was hurt, as the deadline for placing orders for auctions for this Thursday (bonds and bonds) and next week (bonds) expires this Tuesday.
Queues in the street
The queues at the Bank of Spain occurred after the announcement last Friday. from next February 7you will need to have requested it on Tuesday next week meeting (on the website or by phone 913 385 000) go in person (Monday to Friday 08:30 – 14:00) accounts directly at the organization’s headquarters and Madrid like theirs regional branches. Direct accounts are securities accounts opened at the Bank of Spain to hold balances of Government debt purchased by their holders in the primary market (direct Treasury issuances).
Opening an account directly, direct purchase government debt Bank of Spain or via the page Treasury website; the balance transfer securities from a participating entity in the Spanish public debt markets (such as a bank or savings bank) to the Bank of Spain; or direct transfer of an account deceased to his heirs.
These accounts economic rights Obtained from acquired debt (interest expenseredemptions or swaps wire transfer) Besides the reinvestment provided that the depreciation coincides with the days of new debt issuances (the bond issuance schedule is adjusted so that all issues are associated with a redemption). they also allow transfer titles debt before maturity other entity official. On the other hand, they do not allow you to operate. secondary market (buying and selling of public debt among private investors).
renewed interest
public debt of the state attractive again as an investment for Spanish households by for the first time since 2015. That is, the European Central Bank (AMB) started buying government bonds from euro countries to avoid deflation. sank for years interest payment for these values. Now, instead, hardening accelerated from Money Politics To combat the inflationary spiral increased profitability Treasury bills, bonds and liabilities. And families they act accordingly: data shows that in 2022 increased their investments entered public debt for the first time in its history. eight years.
According to the latest figures from the Bank of Spain, individuals 2.232 million Euros invested in treasury bonds (950 million literature 1.282 million in the short term bonds and bonds longer expiration date). The figure is 1,222 million and 120% higher than the previous year and 869 million and 63% higher than in October. Considering the course of the year, it can be predicted that the gap will widen in December and 2022 will actually end with the first annual increase in the household public debt portfolio since 2015. JanuaryTreasury sold 400 million your debt through him networkMore than all of 2022.
This ECB rate hike —2.5 percentage points, up to 2.5% since July — has been credited to the public debt interest, he explains, making it more attractive to households. Like this an average man Amount of outstanding debt at the end of last year 1.727%From 1.636 a year ago, the first increase since 2011. new problems Two examples of debt: that is for semi-annual bills -0.69% in the tender December 2021 (The government returned less money to the investor than it lent) 2.09% in December10-year bonds rose from 0.39% to 2.9%.
unprofitable deposit
Another factor explaining the increasing interest of families is very low profitability offered by deposit By banks despite the ECB rate hike. Like this an average man New deposit in November 0.7% and the balance is still a insignificant 0.16%. Institutions benefit abundant liquidity position Who gave them the ECB injections in recent years? not increase the fee thus providing more profitability to its customers thanks to the increase in loan costs.
in front of someone inflation Annual average 8.4%both public debt and deposits last year loss of purchasing power for households, but lower in the case of government securities. What is predictable is that the advantage in favor of Treasury bonds will continue in 2023. Thus, the ECB has confirmed that it plans to continue raising benchmark interest rates (the market expects two to three-fold increases at the start of the year, rising to 3.5% and 4%, the first this Thursday). And yet experts say that the average interest deposit don’t go too far 2% in one to two yearseven stay down.
Source: Informacion
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