Spanish Public Treasury this Tuesday 1,997.76 million euros in short-term debt auction It did this by cutting the fees offered to investors for both the three-month and nine-month reference, according to results published by the Bank of Spain.
Despite the reduced interest on these bond issues, high levels of profitability maintained the markets’ appetite for investment in Spanish securities. The joint request from both references doubled the amount awarded with a request of 4 billion 574 million euros.
Specifically, the Treasury invested 502.41 million euros in three-month bonds against demand of 1,658.03 million euros, offering a marginal return of 3.538%, below the previous 3.620%.
In the auction of nine-month bonds, the institution affiliated with the Ministry of Economy awarded 1,495.35 million euros. 2,915.97 million demands from investorsand marginal interest was placed at 3.492%, again below the previous 3.510%.
This auction comes at a time when retail investors continue to show up. Great interest in borrowing, Mainly in the short term due to its high profitability.
In fact, retail investors increased their holdings to almost €23,000 million at the end of October; this represents over 31% of the total Letters in circulation; This is the maximum figure to date, compared to 2.4% at the end of the year. thus he became the main owner.
Medium and long-term debt expected to reach millions on Thursday
Treasury will return on Thursday debt market and expects to place between 5.5 billion and 6.5 billion euros in the auction of medium- and long-term debt, with which it will close the January issuance.
Especially public institution 3-year government bond auction will be heldWith 2.50% coupon; The remaining life is 6 years and 9 months and State debts with 1.25% coupon and 15 years State debts with 3.90% coupon.
The reference rates for this auction are 2.592% for 3-year government bonds; and 3.593% for 15-year State obligations.
A month full of record demand for syndicated publications
The first month of the year was marked by exports worth 15 billion euros New 10-year syndicated bond with maturity April 30, 2024 It received a record demand of 138 billion euros.
The issued bond matures on April 30, 2034 and has a coupon of 3.25%, which is lower than the 3.55% coupon of the last 10-year issue in June 2023. The yield is at 3.259%, 9 basis points above 2023. The current 10-year baseline is shorter term, in October 2033.
They highlighted the quality and diversity in the allocation of this new State obligation, where demand was distributed among 512 investment accounts that were highly diverse both geographically and by type of investor.
2024 Treasury financing program
Treasury’s 2024 financing strategy foresees the following: new financing needs approximately 55,000 million for this year, which represents a decrease of 10,000 million compared to 2023.
For its part, the expected gross issuance will amount to €257,572 million, which will be 2% higher than in 2023. depreciation increase, Most of it will be covered by the issuance of medium and long-term instruments aimed at preserving the average life of the public debt portfolio.
Regarding regular Treasury bond issuance, 48 auctions ordinary Bills and Bonds and Government Obligations.
Additionally, in 2024, the Treasury will once again resort to syndication for the issuance of some Government Debt references.
Other goals for 2024 will be to continue the diversification of the investor base and commit to the issuance of green bonds as a structural element of the financing program, thus strengthening the funds. sustainable finance market in spain.