It will return to the markets on October 20 with an auction of bonds and obligations with which it will close the month
MADRID, 11 Oct. (EUROPA PRESS) –
The Public Treasury has placed this Tuesday 1,964.72 million euros in an auction of bills at 3 and 9 months, in the expected medium range, and has done so by remunerating investors with higher interest, reaching a record in bills to 9 months, according to data published by the Bank of Spain.
Investors continue to show interest in Spanish debt securities, since the joint demand for both references has exceeded 4,664.85 million euros, more than double what was finally awarded on the markets.
Specifically, the body dependent on the Ministry of Economic Affairs and Digital Transformation has placed 451.08 million euros in three-month bills, compared to a demand of 1,951.19 million, and the marginal interest rate has been placed at 0.880 %, above the 0.735% of the previous auction in September and reaching its highest level since June 2013.
In nine-month bills, the Treasury has placed 1,513.64 million, below the 2,713.66 million requested by investors, with a marginal return of 2.014%, higher than the previous 1.350%, and standing at its highest level registered, considering that this reference was launched in February 2013.
In recent auctions, the Treasury has had to pay investors more for debt securities, coinciding with rate hikes by the Fed and increases in the price of money also by the ECB.
In fact, in the previous issue held last Thursday, October 6, the Treasury placed 5,407 million in long-term debt, paying more to investors for the four auctioned references.
After this Tuesday’s auction, the body dependent on the Ministry of Economy plans to close the October issue schedule with a new appointment on Thursday the 20th, in which it will offer bonds and debentures.
In accordance with the financing strategy, the Public Treasury maintains the net debt issuance forecast for 2022 at 75,000 million, practically similar to the figure for 2021 (75,138 million), while it estimates that the gross issuance will be reduced by 10% compared to last year, up to 237,498 million euros.
As in recent years, the bulk of the expected gross issuance will be concentrated in Treasury bills and in government bonds and obligations.
According to the 2023 draft General State Budget Law (PGE), gross issuance by the Public Treasury next year will be 256,930 million euros, which represents an increase of 8.2% compared to the estimate for this year, due to the rise in interest rates.
As in recent years, the bulk of the expected gross issuance will be concentrated in Treasury bills and in government bonds and obligations.
For its part, the net indebtedness of the Public Treasury in 2023 will be reduced by 5,000 million euros, to 70,000 million. Breaking down by type of instrument, the Treasury Bills are expected to provide negative net financing of 5,000 million, so that the State bonds and obligations, together with the rest of the debts in euros and in foreign currency, will contribute the remaining 75,000 million.
In 2022, the Treasury has reopened the green bond through the auction procedure, which was issued for the first time in September 2021 and has become a structural component of the Treasury’s financing strategy.
For this reason, the Government indicates that new reopenings of the green bond can be expected in 2023 to contribute to the financing of Spain’s commitments to the ecological transition.
