Spain auctions letters, bonds and obligations this week, with debt on the rise

The Spanish Public Treasury, after the break in Easter, resumes the official auctions in April, and will do so with two bids, one with six and twelve month bills, and the other with bonds and obligations, which will be held with the debt of again on the rise.

In a context of greater volatility in the market due to the expansion of the coronavirus, the Treasury will auction bills for six and twelve months next Tuesday, April 14, while on Thursday, 16, it will issue medium and long-term debt of various denominations.

Specifically, on Thursday it will sell government bonds at three and five years, obligations at fifteen years, and other obligations that mature in 2026.

In the debt market, the yield on the Spanish 10-year bond, the benchmark, has resumed the upward trend in recent days and stands at around 0.8%.

However, it is still far from the highs reached a few weeks ago, when it stood at around 1.4%, before the European Central Bank (ECB) announced a new stimulus package to deal with the coronavirus.

As a consequence of the upward trend, in the last debt auction, held on April 2, the Treasury placed almost 6,000 million in medium and long-term debt, but had to raise interest in most of the denominations.


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