HE public treasury deposited 4,840.34 million euros in six and twelve month bills this TuesdayIt was in the expected mid-range, and it did so by offering returns of over 3% in both cases, according to data released by the Bank of Spain this Tuesday.
The improvement in interest rates, presented in line with the ECB’s recent rate hikes, has maintained the markets’ investor appetite for Spanish securities, given that common demand for both references has nearly doubled from that given.total demand of 8,247 million euros.
Moreover, this new Treasury issue, individual investors show great interest in borrowingGiven its high profitability, which has increased since the beginning of 2022, especially in short-term bills and in contrast to the low return on bank deposits that have not yet risen.
In particular, the Treasury €803.28 million in semi-annual invoicesfaced a demand of around 3,000m euros and offered a marginal return of 3.005%, slightly below the previous issue of 3,164%.
In the 12-month bond auction, the institution affiliated to the Ministry of Economy tendered 4,037.06 million euros, close to the investors’ demand of 5,299 million, and the marginal interest was placed at 3,169%, below the previous 3,335. %.
It will return to the markets on Thursday.
The Treasury will celebrate this Thursday. a new auction of government bonds and obligations – including reference to so-called ‘green bonds’, which the public agency expects to award between 5,500 million and 6,500 million euros–.
Specifically, it will bid for 3-year government bonds with a 2.80% coupon; 10-year Government bond with a coupon of 3.15%; 15-year inflation-indexed government bonds with 0.70% coupon; Government bonds with a remaining life of 19 years and 3 months and ‘green’ bonds with a 1% coupon.
For these tenders; Marginal interest on past issues was 3.441% for 3-year government bonds; 3,376% for 10-year State obligations; At 1.176 percent for 15-year inflation-indexed government liabilities and at 3.601 percent for ‘green’ bonds.
Thus, the Treasury will reopen the ‘green’ bond auction procedure, which was first issued in September 2021 and has become a structural component of the Treasury’s financing strategy, for the first time in 2023 this year.
Expected from public institution ‘Green’ bond reopening in 2023 to help finance Spain’s commitments with ecological transition
2023 Treasury targets
Gross issuance from the Treasury this year will be 256,930 million eurosIt represents an 8.2% increase over this year’s forecast due to the rise in interest rates.
The Treasury’s net debt in 2023 will remain at 70,000 million. In breakdown by instrument types, Treasury Bills Negative net financing for 5,000 millionTherefore, the Government’s bonds and liabilities, together with the remaining euro and foreign currency debts, would contribute to the remaining 75,000 million.