The Treasury places 5,453 million euros in the first auction of May bills at lower rates

MADRID, 7 May. (EUROPA PRESS) -

This Tuesday, the Public Treasury placed 5,453.56 million euros in the first May auction of six- and twelve-month bills, practically within the maximum range expected, and has done so by lowering the profitability offered in both auctions, according to the data provided. by the Bank of Spain.

The demand for the two references has approached 10,000 million euros, which shows that Spanish debt securities continue to arouse interest among investors, despite the fact that the marginal rate has been reduced in both issues.

Specifically, the agency dependent on the Ministry of Economy has placed 1,373.96 million euros in six-month bills, facing a demand that has exceeded 3,000 million euros, more than double, and the marginal profitability has been placed at 3.554 %, below the 3.623% of the previous issue of the same type of paper.

In twelve-month bills, the amount awarded stood at 4,079.60 million euros, while requests have totaled 6,600 million, and the marginal interest has also been reduced from 3.449% in the previous auction to the current 3.424%. .

Although it remains high, the marginal interest has been moving away from the maximum levels in a decade achieved at the end of last year, which exceeded 3.8%, in line with expectations of lower interest rates by of the ECB that discounts the market for the month of June.

After this Tuesday's auction, the Treasury will return to the markets on Thursday with an auction of State bonds and obligations, in which it hopes to place between 5,750 million and 7,250 million euros.

Overall, the Treasury's 2024 financing strategy foresees new financing needs of around 55 billion for this year, which represents a reduction of 10 billion compared to 2023.

For its part, the expected gross issuance will amount to 257,572 million euros, 2% higher than in 2023 due to the increase in amortizations, and the bulk will be covered by the issuance of medium and long-term instruments with the aim of maintaining the average life of the public debt portfolio.

Within the Treasury's strategy for 2024, it is planned to once again resort to syndications for the issuance of certain references of State Obligations.

Other objectives for 2024 will be to maintain 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 sustainable finance market.