HE public treasury placed this thursday 4,349.01 million Euro rose in expected mid-to-low range in auction of government bonds and debt Fee offered to investors for 20-year loan over 4.1% according to data published by Bank of Spain.
In this last issue of November, the demand from investors once again exceeded the amount in the markets. Exceeded 10 billion 71 million eurosmore than twice the amount given.
In particular, the Treasury issued 3-year maturity government bonds with a coupon of 2.80 percent today; 10-year State obligations with a 3.55% coupon and 20-year State obligations with a 3.45% coupon.
A department under the Ministry of Economy was established 847.34 million euros in 3-year government bondsCompared to the demand of 4,092.87 million euros, the marginal interest offered was 3.249%, below the previous 3.533%.
On 10-year State liabilities, the Treasury placed €1,577.28 million compared to a demand of 3,398.1 million, at a margin of 3.616%, below the historical 4.074% of such debts.
Finally, the organization collected 1,924.39 million euros in 20-year government liabilities compared to demand of 2,580.24 million, and the marginal profitability amounted to 4.139%, exceeding the previous 4.007%.
The auction was marked by the European Central Bank’s (ECB) decision to leave interest rates unchanged after ten consecutive increases. In addition, the US Federal Reserve (Fed) chose to maintain interest rates for the second time in a row.
It captured 1.976 million letters on Tuesday, reducing interest
Last Tuesday, the Treasury raised 1,976.05 million euros in the expected mid-range at an auction of 3- and 9-month bonds, cutting the fee to investors for both benchmarks.
Investor demand once again far exceeded the amount placed in the marketsIt exceeded demands by €4.957 million, more than double the amount awarded.
The tender comes at a time when retail investors continue to show great interest in purchasing debt, especially in the short term, given its high profitability, which has increased since the beginning of 2022.
2023 predictions
Gross exports of the Undersecretariat of Treasury This year it will be 256 billion 930 million eurosThis represents an increase of 8.2% compared to the forecast for 2022 due to the increase in interest rates.
Regarding net issuance, the Government announced that it will be reduced by 5 billion euros by 2023, thanks to the “good performance” of the Spanish economy and “loose” compliance with fiscal targets. Thus, Spain’s net debt issuance is expected to increase from 70 billion euros to 65 billion euros.