© Reuters. The Treasury places 5,020 million in bonds, but at a higher interest
Madrid, Nov 4 (.) .- The Spanish Public Treasury has placed this Thursday 5,020 million euros in four different denominations of State obligations but, in almost all cases, at a higher interest rate.
Of the total placed, most, 1,990 million euros have been in seven-year bonds, whose marginal profitability has been 0.054%, higher than the -0.002% applied in the previous bid.
This means that Spain has stopped charging investors for this type of debt.
In ten-year bonds, the Treasury has sold another 1,324 million euros. In this case, the yield was 0.493%, also higher than the previous 0.456%.
The Treasury has also auctioned other 15-year inflation-indexed bonds (residual life of nine years and one month), of which it has awarded 700 million euros.
The interest has been -1.311%, higher (or less negative) than the previous -1.322%.
In the only case in which the Treasury has managed to reduce profitability, it has been in some thirty-year obligations (residual life of twenty-five years), of which it has awarded 1,006 million euros.
The applied interest has fallen to 1,134%, from 1,262% previously.
In total, in this first bid in November, the Treasury has placed those 5,020 million euros, a volume that has been located in the middle part of the planned objective, which ranged between 4,000 and 6,000 million.
Despite the increase in interest, the demand from investors has exceeded 7,000 million euros.
Spain has appealed to the market at a time of greater inflationary tensions, as investors fear that a continued rise in inflation could weigh down the economy and the monetary policy decisions of central banks.
Just this week, both the European Central Bank (ECB) and the US Federal Reserve (Fed) have reiterated that the rise in inflation will be temporary and that, for the moment, there will be no interest rate hikes.
In recent sessions, the profitability of European sovereign debt grew strongly, and even last Monday, the Spanish ten-year bond reached 0.63%, the highest since October 2020.
After several sessions of important falls, today it relaxes to 0.49%.
