©Reuters. The Treasury opens the October auctions with the interest on the debt rising
Madrid, Oct 2 (.).- The Spanish Public Treasury opens the October auctions this week and will do so with rising bond yields, after the avalanche of interest rate hikes by central banks, fear to a global recession, and the UK crisis.
This coming Tuesday, the Treasury will hold the first bid of the month, which will be 6- and 12-month bills. As early as Thursday, it will offer investors medium- and long-term debt in four different denominations.
It will auction ten-year State bonds, other bonds with a residual life of six years and four months, and others with a residual life of twenty-eight years and one month.
Lastly, it will offer investors inflation-indexed bonds with a residual life of eight years and two months.
The Treasury returns to the market at a turbulent time, affected by the avalanche of interest rate hikes undertaken last week by different central banks, including the US Federal Reserve (Fed).
This week, the fear of a global recession and the crisis in the United Kingdom have also caused a rise in the yield on debt.
The British government announced last Friday a massive tax cut, which caused a public debt and pound crisis that led the Bank of England to intervene.
The agency will initiate an emergency sovereign bond purchase in the face of the “material risk to financial stability” in the United Kingdom.
In this context, the ten-year Spanish bond, the reference one, has risen strongly this week, to around 3.5%, although at the end of the week it relaxes to 3.2%.
For its part, the ten-year German bond, considered the safest in Europe, is trading above 2%.
In addition to the two auctions that the Treasury will hold this week, it is scheduled to auction three and nine-month Treasury bills on the 11th, and new government bonds and obligations on the 20th.