HE public treasury invested 6,425.41 million euros this ThursdayIt did so in an expected mid-to-high range government bond auction, and it did so by rewarding two of the three references issued with higher interest, according to data released by the Bank of Spain.
investorsContinuing to show interest in Spanish debt securities and the joint demand for the three auctioned references exceeded 9,000 million euros, eventually failing to replicate what was awarded in the markets.
Special, The Treasury auctioned the bonds this Thursday. Situation up to 7 years, With 0.80% coupon; Government bonds with a maturity of 10 years with a coupon of 3.15% and a remaining life of 25 years and 6 months with a coupon of 2.70%.
7 years in relation to the obligations of the state, the agency invested 2,276.24 million and handled 3,428.35 million requests, marginal interest remained at 3.272%, below the previous 3.527%.
on your side, Treasury seized 2,756.62 million in 10-year State liabilities, Against a demand of 3,811.71 million, it did so at a marginal interest of 3,520%, higher than the last auction’s 3,416%.
Finally, in State obligations with a remaining life of 25 years and 6 months, Treasury captured 1,392.55 million requests, compared to 1,792.58 million requests, and marginal interest was 3.940%, above the previous 3.439%.
This issue is published by the Undersecretariat of Treasury last Tuesday. It invested 1,985.36 million euros in three- and nine-month bonds, yielding investors interest of 2.940% and 3.199%, respectively.
All this in a context marked by successive rate hikes by both the Fed and the European Central Bank. In fact, the last decision by the European Central Bank (ECB) Governing Council last month was to raise interest rates by 50 basis points so that the interest rate for refinancing operations remains at 3.50%, while the deposit rate is 3% and the lending rate is It reaches 3.75%.
With this sixth consecutive rise in the price of money, which has reached its highest level since October 2008, Despite the turbulence in the financial sector following the intervention of two banking institutions in the USA, the ECB maintains the normalization speed in its monetary policy. and the stock market crash of European banks due to doubts about Credit Suisse.
2023 Treasury targets
According to the latest data from the Ministry of Economy, This year, 36.4% of the medium and long-term financing program has been realized so far. For its part, the average life of outstanding government debt is 7.85 years and the average cost of the portfolio is 1.83%.
Gross issuance of the Treasury this year It will increase by 8.2% to 256,930 million euros.compared to this year’s forecast due to the increase in interest rates.
on his behalf Treasury’s net indebtedness to remain at 70,000 million in 2023. By instrument types, Treasury Bills are expected to provide 5,000 million net negative financing, while Government bonds and liabilities will contribute the remaining € 75,000 million and foreign currency denominated debt.