The Treasury returns to the market while debt profitability relaxes By EFE

Madrid, Nov 7 (.) .- The Spanish Public Treasury will once again appeal to the market this Tuesday with an auction of bills for six and twelve months, and it will do so with the profitability of sovereign debt falling after a week marked by the decisions of central banks.

The yield on the ten-year Spanish bond, the benchmark, closed the week at around 0.44%, a level significantly lower than the 0.63% that it reached on Monday, when it reached its highest since October 2020.

The yield on European sovereign bonds grew strongly after it was learned that inflation continues to grow in Europe.

The president of the European Central Bank (ECB), Christine Lagarde, assured that prices will moderate more slowly than expected. However, the ECB decided to keep its monetary policy unchanged.

This same week, the president of the US Federal Reserve (Fed), Jerome Powell, also acknowledged that inflation is “high”, and more persistent than anticipated, but transitory, and that it will begin to moderate in the second or the third quarter of 2022 “.

For this reason, he rejected that the central bank is contemplating an increase in interest rates, although the institution did decide to start this month to reduce its monthly bond purchase program.

The Bank of England, which also met this week, decided to hold rates despite rising inflation.

After the auction on Tuesday, the 16th, the Treasury will hold another bid for three and nine-month bills; and on the 18th, of bonds and obligations of the State.

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