The Treasury expects to place up to 2,500 million in three- and nine-month bills this Tuesday

July 11 () –

The Public Treasury expects to place this Tuesday between 1,500 million and 2,500 million euros in a new auction of bills at three and nine months, according to the objectives announced by the body dependent on the Ministry of Economic Affairs and Digital Transformation.

As a reference for this Tuesday’s auction, the Treasury placed 1,795 million euros with a marginal interest of -0.350% on the three-month bills and the 0.660% in those of nine months.

After this auction, the Treasury will return to the debt market on July 21, with an issue of State bonds and obligations with which it will close the month.

In recent auctions, the Treasury has had to pay investors more for debt securities, coinciding with the rate hikes by the Fed and the announcements of increases in the price of money also by the ECB, which has already announced that it will start the path of increases in the month of July.

Furthermore, it comes at a time when the risk premium and yield on the 10-year bond are rising. Faced with this, the European Central Bank has already announced that the flexible reinvestment of bonds acquired during the pandemic that have matured will begin in July with the aim of containing, if necessary, risk premiums.

HAS ALREADY EXECUTED MORE THAN 61% OF THE 2022 ISSUANCE PROGRAM

According to the data presented last week, the Public Treasury has already executed more than 61% of the medium and long-term debt issuance program and the downward trend in the average cost of the portfolio has continued, which currently stands at 1.59%, lower than at the end of 2021.

In total, in accordance with the financing strategy, the Public Treasury maintains the net debt issuance forecast for 2022 at 75,000 million, practically similar to the figure for 2021 (75,138 million), while it forecasts that the gross issuance will be reduced by 10% compared to last year, up to 237,498 million euros.

As in recent years, the bulk of the expected gross issuance will be concentrated in Treasury bills and in government bonds and obligations.