April 2024

Bank of Spain building. Photo: Carlos Luján (Europa Press)

New auction Treasure letters. The Public Treasury has placed this Tuesday 5.231,93 millions of euros in a new auction Treasure letters at 6 and 12 months. This amount is in line with the agency’s forecasts, which expected to award between 4,500 and 5,500 million.

The Public Treasury has sold 1,310.1 million euros in 6-month Treasury Bills with a marginal interest rate 3,623%. These are lower interests than the 3.715% reached in the last auction of this type of securities.

Likewise, the Treasury has placed 3,921.83 million euros in 12-month bills, more numerous in terms of requests. The marginal profitability was 3.449%, a percentage also lower than the 3.516% of the previous auction..

The interest given by Treasury Bills, therefore, continues to move away from the maximum levels in a decade achieved at the end of last year, which exceeded 3.8%.

Despite the reduction in offered interest rates, the strong performance has continued to attract investors’ attention to Spanish bonds, given that The combined demand for both emissions almost doubled the allocated amountwith requests that reached 10,328 million euros.

After this week’s auction, the Treasury will return to the financial markets on April 16. On that date, bills with maturities of 3 and 9 months will be issued, followed by another issue on the 18th of bonds and State obligations.

Treasury funding for 2024

In its financing strategy for 2024, the Treasury plans new financing needs of around €55 billion for this year, which represents a reduction of €10 billion compared to 2023.

The expected gross issuance amounts to 257,572 million euros, 2% more than in 2023, mainly due to the increase in amortizations. Most of this amount will be covered through the issuance of medium and long-term instruments, with the aim of maintaining the average life of the public debt portfolio.

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