This Public debtespecially treasure lettersis a hot investment asset for little saviors. Queues at the headquarters of the Bank of Spain and the problems the Treasury website has had in recent weeks demonstrate this. Her cost effectiveness made them very attractive, and last year individuals increased their Government securities portfolios for the first time since 2015 (1,225 million to November and 121%, 2.232 million). Three, six, nine and twelve-month bonds auctioned in January, 2.198% and 2.998%. The average type facing this new deposit Maturity up to one year given by banks in December 0.42%. Treasury offers this simulator to check what profitability can be achieved.
What are Treasury bills?
Government debt securities. fixed rent (that is, with a built-in maturity period and a fixed and previously fixed return) and short-term (three, six, nine and twelve months). are sold through auctions: Usually three- and nine-month securities, fourth tuesday of each month, and those of six and twelve months third tuesday of every month face value 1.000 euro, should always be in multiples of one thousand in case of larger investment with it. HE Purchase price normally less than nominally, so cost effectiveness achieved at the end of the period difference between the amount paid for them and the amount returned to us by the Treasury on the due date, ie the nominal amount requested (EUR 1,000 or a multiple of this).
What are Treasury bonds and liabilities?
fixed income government debt securities. medium and long term. Bonds and bonds have similar characteristics and work in the same way as bonds, with the difference that they have longer maturities and longer maturities. pay annual interest. vineyards two, three and five years are usually auctioned first thursday obligations every month 10, 15 and 30 years are usually auctioned third thursday Actual price for each month can be above, below or equal to the nominal price (1,000 Euros per title). Therefore, the Treasury upfront depositis applied to the nominal value intended to be invested. After the auction is done, the real price of the security is known. Your difference with the previous deposit returned to buyer It took place in your account a few days after the auction without any commissions.
How do debt auctions work?
This offers to buy In Treasury auctions, debt can be of two types: competitive (Although the Treasury may set a minimum price, the investor specifies the maximum price he is willing to pay for each title) and not competitive (here buyers do not specify the price, instead accept environment auction result). This little saviors Retailers often offer non-competitive offers, which is usually give the whole amount Who wants to invest At auctions, bids are ranked according to: descending order and one accounts half price based on accepted competitive claims. Minimum price purchase offers are made at this price; requests between the minimum price and the average price pay the price they bid; demands above the average price and non-competitive demands pay that average price. You can check the calendar of upcoming auctions at this link.
Where can I buy public debt?
There are three ways to get a loan in one of the direct auctions held by the government. first Treasury website, in the securities sale section (it is necessary to have a digital certificate or electronic DNI, this video gives details). Second, any 16 branches of the Bank of Spain (Request required since last tuesday) meeting, by calling the branch at 913385000 or via the web, then selecting the “direct account transactions” section). And the third is over banks, companies and brokers. This third channel is the most expensive. Bank of Spain fees 0.15% at least 0.9 Euros and maximum 200 euros A commission is also applied for transactions carried out through the Treasury. Adds assets to this another commission for its management.
What should I do to buy from the Bank of Spain?
Go to any branch of the Bank of Spain with meeting, provided the following documents: NIF and details of the bank account from which you want to receive the interest and capital. Payment of the amount you want to invest, cash, check via bank or also Transfer to the Bank of Spain account at the latest one day before the auction. The minimum face value for the investment is 1,000 Euros, but the money payable to the Bank of Spain upfront deposit to be determined before the auction. Letters are now 100%, i.e. 1,000 Euros per title. In the case of bonds and debentures, the pre-deposit is usually set by the Bank of Spain on the Friday before the auction day.
What are the direct accounts of the Bank of Spain?
Direct accounts securities accounts -not cash- to open in Bank of Spain borrow and hold State obtained in treasury auctions. Opening of an account directly occurs as a result of purchase at Bank of Spain or on the Treasury website; HE balance transfer securities from a bank to the Bank of Spain; or transfer of a person’s direct account deceased to his heirs. Direct accounts, as well as interest and principal, reinvest the debt may transfer the titles to another authorized institution when the term expires and before the due date. On the other hand, they do not allow you to operate. secondary market (buying and selling of public debt among private investors). They are only allowed residents of Spainwhere non-residents must purchase debt through financial institutions.
Source: Informacion
James Sean is a writer for “Social Bites”. He covers a wide range of topics, bringing the latest news and developments to his readers. With a keen sense of what’s important and a passion for writing, James delivers unique and insightful articles that keep his readers informed and engaged.