©Reuters. The Treasury opens the April auctions, while the bond continues to rise
Madrid, Apr 3 (.).- The Spanish Public Treasury inaugurates this week the auctions for the month of April while in the secondary debt market, the profitability of sovereign bonds continues to climb in anticipation that the central banks will tighten their monetary policy due to runaway inflation.
The Treasury will hold two auctions this week: the first of it, on Tuesday, the 5th, and in it, it will place 6- and 12-month bills, while on Thursday, March 7, it will award four different medium- and long-term debt denominations term.
Specifically, it will offer bonds for ten years, seven years, others with a residual life of five years, and others for fifteen years indexed to inflation.
Spain will carry out new auctions at a convulsive moment in the debt market, where the ten-year German bond, the safest in Europe, registers strong increases and this week has reached 0.7%, maximum since 2018.
Likewise, the Spanish bond has reached its highest level since 2018, exceeding 1.5%.
Analysts explain that the escalation in the profitability of the debt occurs in the face of high and growing inflation, which is being aggravated by the rise in energy prices as a result of the war in Ukraine.
This is forcing the main central banks to end their unconventional monetary policies and anticipate more restrictive ones, such as more aggressive interest rate hikes than expected, which could harm economic growth.
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