The public treasury reported on Thursday a bond auction result of 4,349.01 million euros, coming in at a mid-to-low range and signaling steady investor appetite. Investors were offered a yield just over 4.1 percent for a 20-year loan, according to data released by the Bank of Spain.
In this final November issue, investor demand again exceeded the supply in the market, topping 10.071 billion euros—more than double the amount sold.
Specifically, the Treasury issued three-year government bonds with a 2.80 percent coupon, ten-year State obligations with a 3.55 percent coupon, and twenty-year State obligations with a 3.45 percent coupon.
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A department within the Ministry of Economy reported 847.34 million euros in three-year government bonds sold. Demand reached 4,092.87 million euros, resulting in a marginal yield of 3.249 percent, down from 3.533 percent in the prior issue.
For ten-year State liabilities, the Treasury placed 1,577.28 million euros against demand of 3,398.1 million, with a margin of 3.616 percent, below the historical 4.074 percent for similar issues.
Finally, 1,924.39 million euros were issued in twenty-year government liabilities against a demand of 2,580.24 million, yielding 4.139 percent, above the previous 4.007 percent.
The auction coincided with the European Central Bank’s decision to hold rates steady after a series of increases. The United States Federal Reserve also chose to keep rates unchanged for a second consecutive time.
It captured 1.976 million euros on Tuesday, with reduced yields
Last Tuesday, the Treasury drew 1,976.05 million euros in a mid-range auction for three- and nine-month bills, while the investor fee was lowered for both benchmarks.
Demand again far exceeded the amount issued, surpassing bids by 4.957 million euros, more than twice what was awarded.
The auction takes place at a moment when retail investors show strong interest in debt purchases, particularly in the short term, drawn by favorable yields that have persisted since early 2022.
2023 projections
Gross exports from the Treasury’s Undersecretariat are projected to reach 256.93 billion euros this year, marking an 8.2 percent rise over 2022 due to higher interest rates.
On net issuance, the government announced a cut of 5 billion euros for 2023, citing solid economic momentum and steady fiscal performance. This implies a net debt issuance update from 70 billion euros to around 65 billion euros for Spain.
Note: Figures reflect market activity and policy context as reported by official sources and central bank communications for the current reporting period.