He interest on short-term public debt rises again. At the auction held this Tuesday treasure letters at 3 and 9 monthsthe marginal interest has increased with respect to the previous tender and The demand for securities has tripled the supply. In total, 2,036.27 million euros have been placed, compared to a demand that has exceeded 6,000 million, which reflects that investor appetite for these assets remains. The yield on 6- and 12-month securities also recorded an increase in last week’s auction.
Of debt to 3 months 440.88 million have been awarded, compared to a demand that has exceeded 2,210 million euros, at a marginal interest that has risen to 3,740%, compared to 3.538% in January. Regarding titles to 9 months1,595 million have been awarded, compared to a demand of 4,050 million, at a marginal interest of 3,504%, compared to 3.492% last month. In both cases, these assets once again increased the yield they offer after reducing it in January.
This Tuesday’s auction, in which the Treasury had proposed to raise between 1,500 and 2,500 million euros, was held after the European Central Bank (ECB) recently decided to maintain interest rates, so that the reference rate for its refinancing operations remains at 4.50%, while the deposit rate remains at 4% and the lending facility rate at 4. 75%.
Monetary policy decisions affect Treasury auctions, which in these months have seen the remuneration offered to investors grow, in line with rate increases. This has caused the interest in the purchase of debt to increase, especially in the case of the acquisition of Treasury bills. by households.
After today’s auction, the Treasury will return to the markets next Thursday to place between 5,000 million and 6,000 million euros in an auction of State bonds and obligations, the last one to be held this February.
Specifically, the organization will place 3-year State bonds, with a coupon of 2.50%; 5-year State bonds, with a coupon of 3.50% and State obligations with a residual life of 9 years and 5 months and with a coupon of 2.35%. The reference yields for this auction are 2.811% for 3-year State bonds; of 2.628% for 5-year State bonds and 3.985% for State obligations with a residual life of 9 years and 5 months.
The Treasury’s financing strategy for 2024 foresees new financing needs of around 55,000 million, which represents a reduction of 10,000 million 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 objective of maintaining the average life of the portfolio of public debt.