Public Treasury this Tuesday 1,795.6 million euros It did so in letters at three and nine months below the expected average range, and by charging investors less at three months and leaving negative returns at nine months, according to data from the Bank of Spain.
Joint request for the two references put up for auction this Tuesday, €4.1 billionmore than double what is given in the markets at the end.
In particular, the organization affiliated to the Ministry of Economy, 364.10 million euros by letter to three monthsAgainst a demand of 1.649 million, marginal interest was placed at -0.350%, which is less negative than -0.478% quoted in the same title last May.
The Treasury also placed 1,431.50 million euros in nine-month bonds under six-month bonds. 2.481 million was requested by investors. In this case, the marginal return was at 0.660%, compared to the negative rate of -0.081% on the previous issue.
In recent auctions, the Treasury had to pay investors more for debt securities. Fed rate hikes and the ECB’s first bullish statements in July.
Thus, the yield on the Spanish ten-year bond rose to 2,984% this Tuesday, risk premium It rose above 130 basis points for the first time since May 2020.
After this auction, it depends on the agent Ministry of Economy and Digital Transformation It will return to the markets next Thursday, June 16, with a long-term debt issue that will close the month.
In particular, the Treasury will tender government bonds with a maturity of 5 years with 0% coupon and maturity. January 31, 2027; Government Bonds with a remaining life of 8 years and 1 month with a coupon of 1.95% and a maturity of 30 July 2030, and a Government Bond with a coupon of 0.85% on 30 July 2037 with a maturity of 15 years.
financing program
This month of June is marked by the post that was released on June 7. 8 billion € A new ten-year syndicated bond, which received a high demand of 40,955m euros by the Treasury, reflected investor appetite for Spanish debt securities.
With this syndication of 8 thousand euros, the Treasury exported 57.6% of the medium and long-term financing program. The total export cost has been 0.71% so far this year. The average lifetime of government debt in circulation reaches 8.11 years, over 8 years at the end of 2021, reducing refinancing risks.
Likewise, by making use of the studies carried out by the Treasury in recent years, low costs The cost of financing allows the cost of debt stock to continue to fall to 1.59% in 2022, from 1.64% at the end of last year.
In line with its financing strategy, the Public Treasury maintains its estimate of $75,000 million. net debt issuance For 2022, the gross issuance is expected to decrease by 10% to €237,498 million compared to last year, while almost similar to the 2021 figure (75,138 million).
As in recent years, most of the expected gross issuance is in Treasury bills and government securities and bonds.
As of July, however, the context of debt issuance will change as the European Central Bank (ECB) Governing Council announces its own in-house net purchases. public asset purchase program (English abbreviation APP) will expire in July and there will be a 25 basis point rate hike in the same month.