MADRID, 4 Ago. (EUROPA PRESS) -
The Public Treasury plans to place this Thursday between 4,250 million and 5,750 million euros in an auction of State obligations with which the emissions corresponding to the month of August will start, as reported by the body dependent on the Ministry of Economic Affairs and Digital Transformation.
Specifically, this Thursday, August 4, the Treasury will issue State Obligations with a residual life of four years and three months, as well as seven-year State Obligations; Ten-year State Obligations and fifteen-year inflation-indexed State Obligations.
As a reference for State Obligations with a residual life of 4 years and 3 months, the interest rate of the last auction was 1.327%; while it was placed at 1,930% in the 7-year State Obligations; at 2.550% for 10-year Government Bonds and -0.437% for 15-year inflation-indexed Government Bonds.
It will be the first auction to be held after knowing the decision of the Governing Council of the European Central Bank (ECB) to raise interest rates by 50 basis points, so that the interest rate for its financing operations will be at 0 .50%, while the deposit rate will reach 0% and the loan facility rate, 0.75%.
In recent auctions, the Treasury has had to pay investors more for debt securities, coinciding with the rate hikes by the Fed and the announcements of increases in the price of money also by the ECB.
Furthermore, it comes at a time when the risk premium and yield on the 10-year bond are rising. Faced with this, the European Central Bank has already announced that the flexible reinvestment of bonds acquired during the pandemic that have matured will begin in July with the aim of containing, if necessary, risk premiums.
As reported to Europa Press by sources from the Ministry headed by Nadia Calviño, the percentage of execution of the medium and long-term emissions program reaches 68%, in line with last year. Thus, they would remain to issue 81,000 million in 2022 in Letters, Bonds and Obligations.
The average cost stands at 1.61%, down from 1.64% in 2021, and the average life of the portfolio continues to be above 8 years.
In total, 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 forecasts 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.