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©Reuters. Spain places 4,760 million in its first bid in June, but at more interest
Madrid, June 2 (.).- The Spanish Public Treasury held its first bid in June this Thursday and placed 4,760 million euros in four different denominations of medium- and long-term debt, but at higher interest rates.
According to auction data, the Treasury has sold 1,564 million euros in seven-year bonds, at an interest of 1.930%, higher than the previous 1.706%.
It has also placed another 1,286 million euros in fifteen-year bonds, with a residual life of three years and two months, with a marginal yield of 1.202%, also higher than the previous 1.04%.
In other ten-year obligations (with a residual life of eight years and eleven months), 1,240 million euros have been awarded. In this case, the return was 2.159%, higher than the previous 1.757%.
Finally, the Treasury has placed 670 million euros in ten-year bonds indexed to inflation.
Although the yield on this debt is still negative at -0.945%, it is higher (or less negative) than the previous -1.55%.
The Treasury has held this new auction at a time when the yield of sovereign bonds has risen again, pending the start of interest rate hikes by the European Central Bank (ECB).
The president of the monetary institution, Christine Lagarde, confirmed last week that the entity will start raising interest rates in July to fight the rise in inflation.
However, some members of the ECB have called for the body to normalize monetary policy more quickly, with higher rate hikes than expected.
In this context of skyrocketing inflation and waiting for the ECB’s decisions, the yield on European bonds has returned to its highest for the year.
Today, the ten-year Spanish bond yield climbs to 2.317%, and the German, to 1.199%.
Despite the increase in the cost of financing from the Treasury, the demand in the auction this Thursday has exceeded 8,100 million euros.
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