The Treasury places 5,567 million in debt but, again, at a higher cost

Madrid, Apr 7 (.).- The Spanish Public Treasury has placed this Thursday 5,567 million euros in four different denominations of medium and long-term debt and, again, they have been awarded at a higher interest rate, which means that the State has to pay more to finance itself.

Of the total amount placed today, the majority, 2,325 million euros, have been in ten-year bonds, whose marginal interest has been 1.607%, higher than the 1.313% applied in the previous bid.

Likewise, another 1,507 million have been sold in other ten-year obligations, but with a residual life of five years.

The yield applied to this type of debt was 0.977%, also higher than the previous 0.77%.

On the other hand, Spain has awarded 1,205 million euros in other seven-year obligations that, likewise, have raised the interest to 1.245%, compared to the previous 0.681%.

Finally, the Treasury has placed fifteen-year bonds indexed to inflation among investors. The volume awarded was 530 million, and interest was -0.829%, higher, or less negative, than the previous -1.02%.

Despite the fact that the cost of debt has risen, demand from investors has been high, exceeding 11,000 million euros.

The Treasury has appealed to the market again -it is the second time this week- at a time when the yield of sovereign bonds continues to climb in the secondary market.

And this, given the forecast that the central banks are going to tighten their monetary policy in the face of runaway inflation, which could affect the economy, some experts fear.

This Wednesday the minutes of the last meeting of the US Federal Reserve (Fed) were released, which confirmed that the body is in favor of raising interest rates more aggressively, with increases of half a percentage point.

Although today the escalation of the yield of sovereign bonds is slowing down, in recent days, the German bond, considered the safest in Europe, has reached 0.7%, maximum since 2018.

The Spanish bond has also reached its highest level since 2018, exceeding 1.6%.

After the auction this Thursday, the Treasury has two more bids scheduled in April. On the 19th, it will offer 3- and 9-month bills, and on the 21st, new State bonds and obligations.