new increase treasure letters. Business in total 2 billion 37 million euros in 3 and 9 months It generated higher returns than last month’s auction. Titles Three months later they reached a marginal interest rate of 3,590% compared to 3,490% a month ago highest level since 2011. 559.40 million were placed compared to almost quadrupled demand at 2,130.08 million.
As for the letters Marginal interest increased to 3.818% in 9 monthsIt was at the same level as 10 years ago, compared with 3.737% in the September auction. The Treasury gave a loan of 1,478.15 million in response to a demand of 3,268.6 million.
Investor demand once again far exceeded the amount invested On the markets and at auction on Tuesday Claims exceeded 5,398.69 million eurosmore than twice the amount given.
This was the first Vice President and Minister of Economic Affairs Nadia Calviño to say that Spain will reduce net debt issuance by 5 billion euros It was planned for 2023, thanks to “good progress” in the Spanish economy and “loose” compliance with fiscal targets. With this Spain will go Net debt issuance between 70,000 million and 65,000 million.
The improvement in the interest rates offered is related to the recent increases in interest rates. price of money The European Central Bank (ECB) maintained the markets’ investment appetite for Spanish bonds. Retail investors therefore show great interest in purchasing debt, mostly in the short term, especially given its high profitability on short-term bills, which has increased since the beginning of 2022. Moreover, this figure exceeds the fee offered by major banks for deposits.
New bond linked to European inflation
This auction coincided with its issuance. New 15-year inflation-linked European bondDemand of approximately 28 billion euros was recorded. The Treasury determined the size of the issuance as 3 billion euros.
This demand is higher than the demand recorded by major European Treasuries this year According to Ministry of Economy sources, this demand for a bond issue with similar features was also the highest demand Spain has received for an inflation-linked bond.
“The good reception of the market and the quality of the orders, Investor confidence in the Spanish economy“Following the announcement of new economic forecasts and the reduction of the debt/GDP ratio, as well as the announcement that the Treasury’s financing need for 2023 will be reduced by 5 billion dollars,” they say, and remind that it was well received by the market. 3- and 9-month letters were put up for auction.