The Treasury places 5,116 million in medium and long-term debt, lowering profitability for investors

MADRID 17 Oct. () –

The Public Treasury has awarded this Thursday, in the last auction in October, a total of 5,115.861 million euros in medium and long-term debt and has done so at lower rates than in previous issues, according to data published by the Bank from Spain.

This last October auction coincides with a new rate meeting of the European Central Bank (ECB), in which the organization is expected to cut interest rates again by 25 basis points, thus giving continuity to the quarter-point adjustment undertaken in September.

The demand in this Thursday’s auction, which has exceeded 9,625 million euros, has not doubled what was finally awarded, but the amount raised by the Treasury in this issue has been in the medium-high range expected ( between 4,500 million and 5,500 million euros).

Specifically, the Treasury has auctioned 7-year State obligations, with a coupon of 3.10%; State obligations for 10 years, with a coupon of 3.45% and State obligations with a residual life of 24 years and a coupon of 2.70%.

The agency dependent on the Ministry of Economy has placed 1,226.206 million euros in 7-year State obligations, with a marginal interest of 2.651%, below the 2.701% of the previous auction of this type of paper. The demand in this reference has exceeded 2,686 million euros.

Likewise, the Treasury has awarded 2,487.168 million euros in 10-year State obligations, at a marginal rate of 2.925%, below the 3.042% of the previous issuance of this reference. The amount requested with this paper has been 4,317 million euros.

Finally, the organization has raised 1,402.487 million euros in State obligations with a residual life of 24 years, and has done so at a marginal interest of 3.515%, lower than the previous 3.940%, and with a demand that has exceeded the 2,622 million euros.

GROSS EMISSION IN 2024 OF 257,572 MILLION

Overall, the gross issuance planned for this year will amount to 257,572 million euros, 2% higher than in 2023, due to the increase in amortizations, and the bulk will be covered by the issuance of medium and long-term instruments with the objective of maintaining the average life of the public debt portfolio.

For its part, the Treasury’s 2024 financing strategy foresees new financing needs of around 55 billion for this year, which represents a reduction of 10 billion compared to 2023.

Within the Treasury’s strategy for 2024, it is planned to once again resort to syndications for the issuance of certain references of State obligations.

Another objective for 2024 will be to maintain the diversification of the investor base and commit to the issuance of green bonds as a structural element of the financing program, thus strengthening the sustainable finance market.