The public treasury conducted a sizable auction for short and mid-term debt, distributing 2,048 million euros in letters over three and nine months at a Wednesday event. The nine-month securities carried a yield trimmed by one basis point.
Treasury data show that nine-month notes were offered to investors. The total demand reached 1,524.98 million euros, with a marginal rate of 3.70 percent, which sits eleven basis points below the previous auction’s 3.81 percent from last July.
For the quarterly bonds, the department placed 523.04 million euros at a yield of 3.535 percent, nudging up by at least four basis points from the prior month’s level. The marginal yield was 3.531 percent.
Investors requested 5,351.9 million euros for these securities, broken down into 3,462.47 million euros in nine-month notes and 1,889.43 million euros in three-month notes. The Public Treasury had set an issue target between 1,500 and 2,500 million euros for the issuance.
Demand for quarterly bonds was more than three times the supply, exceeding 3.6 times, while nine-month bonds attracted demand of nearly 2.3 times the targeted amount.
In the preceding week, the agency allocated approximately 4,850 million euros across six- and twelve-month issues. The six-month yield reached 3.665 percent, and the one-year bonds saw a rate cut that brought the yield down to 3.682 percent for the year-to-date issue. The adjustments reflect a cautious stance from the treasury as market conditions evolved.
Following this auction and the suspension of the planned auction for bonds and liabilities next Thursday, the Undersecretariat of the Treasury indicated it would pause market operations until September, with six- and twelve-month bills continuing to be offered later in the year. This strategic pause is being viewed as a measured step in aligning debt issuance with broader fiscal planning and market demand, maintaining a steady supply of funding while monitoring liquidity and rate expectations in the market.