Spain places 2,080 million in letters at 3 and 9 months, but at a higher interest

Madrid, Jan 18 (.).- The Spanish Public Treasury has placed this Tuesday 2,080 million euros in letters to three and nine months that, again, have come out at a negative marginal interest, but higher.

According to auction data, of the total amount placed, most of it, 1,540 million euros, has been in nine-month bills.

The yield obtained on this type of debt was -0.557%, slightly higher (less negative) than the -0.558% applied in the December bid.

On the other hand, the Treasury has sold another 540 million euros in three-month notes that, in the same way, have been placed at a higher yield.

They have been awarded at -0.6%, higher than the previous -0.69%.

Despite the rise in interest, investor demand has exceeded 5,360 million euros.

Yields on Treasury bills have risen at a time when the debt market is once again stressed by inflationary pressures and investors’ fear of steps central banks may take to control rising prices.

And this, in a day in which the price of , the benchmark in Europe, hits its highest since 2014.

At this time, the return on the ten-year Spanish bond rises to 0.67%, while the German bond, considered the safest in Europe, is once again touching positive rates, trading at -0.014%.

This Tuesday’s auction was the first scheduled by the Treasury for this week, since on Thursday, the body will once again appeal to the market with a medium and long debt bid.

It will auction five-year government bonds, some obligations with a residual life of 8 years and three months (expiring in 2030), and others that have a residual life of 18 years and nine months (expiring in 2040).

The objective of the auction is to capture between 4,000 and 5,000 million euros.

In the first weeks of 2022 the Treasury has already held three auctions. The first of them was on January 5, and it awarded 5,680 million in four different denominations of debt.

Last week it celebrated another two, since it issued 5,516 million in an auction of six and twelve-month bills and another 10,000 million in a syndicated placement (carried out by banks among investors) of a ten-year bond.