The Public Treasury has placed 1,980.39 million euros this Tuesday in three- and nine-month bills and has raised the remuneration of both references, offering 3.8% in the case of nine-month bills, according to data from the Bank of Spain.
The increase in profitability that the Treasury offers month by month means that investor demand far exceeds the amount placed. In the auction on Tuesday, the requests have approached 5,000 million euros, more than double the amount awarded.
Specifically, the department under the Ministry of Economic Affairs has placed 459.32 million euros in three-month bills, in response to a demand of more than 1,800 million euros. The marginal interest offered was 3.531%, above the 3.263% of the previous auction and the highest percentage since November 2011.
In nine-month bills, the Treasury has awarded 1,521.07 million euros, below the 2,876 requested by investors, at a marginal return of 3.810%. Figure higher than the 3.490% offered in the previous issuance of June 13 and the highest level recorded, taking into account that this reference was launched in February 2013.
The improvement in the interest rates offered in line with the latest increases in interest rates by the ECB has maintained the investor appetite of the markets for Spanish bonds. Private investors are showing great interest in buying debt, mainly in the short term due to its high profitability, which has been growing since the beginning of 2022, especially in the case of shorter-term bills.
After this auction, the Treasury will return to the debt markets on July 20 with an issue of government bonds and obligations with which it will close the month of July. Gross issuance this year will be 256,930 million euros, which represents an increase of 8.2% compared to the estimate for 2022, due to the rise in interest rates.
The net indebtedness of the Public Treasury in 2023 will remain at 70,000 million. Breaking down by type of instrument, Treasury Bills are expected to provide negative net financing of 5,000 million, so the State bonds and obligations will contribute the remaining 75,000 million along with the rest of the debts in euros and foreign currency.
