©Reuters. Spain resumes the auctions with 40% of the 2022 financing already raised
Madrid, May 1 (.).- The Spanish Public Treasury opens the May auctions this week, and it will do so when the body has already issued 94,172 million euros in 2022, which represents 40% of the total planned financing program for exercise.
This 40% represents about 6% more than what was captured by the Treasury in the same period of 2021.
Of the total volume issued, 69.2 billion euros corresponds to the medium- and long-term program, with which the Treasury has already captured 42.5% of the estimate in this segment.
The Treasury will open the May auctions next Tuesday, the 3rd, and in it, it will place bills at six and twelve months.
Two days later he will sell five-year bonds; seven-year bonds; other obligations to fifty years, and others to fifteen years indexed to inflation.
In recent auctions, the Treasury has had to raise the yield offered on debt issues in the face of the rise in bond yields in the secondary market.
As a consequence, although the average cost of outstanding debt stands at 1.55%, a new all-time low, the average cost of newly issued debt is no longer negative, reaching 0.39% at the close of March.
Secondary market debt yields have risen sharply on expectations that central banks will tighten their monetary policy more aggressively than expected in order to control inflation.
In this sense, the president of the European Central Bank (ECB), Christine Lagarde, hinted this week at a rise in interest rates in the summer.
“The ECB’s mandate is to guarantee price stability” and for this the entity has decided to stop buying debt earlier, “with great probability at a time soon in the third quarter, probably in July,” Lagarde assured.
Meanwhile, the US Federal Reserve (Fed) will meet on May 4, and experts expect it to raise interest rates for the second time, this time by 50 basis points.
Likewise, the Treasury auction next Tuesday will be the first held by the body after the Government has lowered the forecast growth for the Spanish economy in 2022 as a whole to 4.3%, which is 2.7 points less compared to to 7% that until now was estimated, mainly due to the impact derived from the war in Ukraine.
