January 16, 2021

The Treasury places 2.667 million in letters at more negative rates to three months – The Province

The Treasury places 2.667 million in letters at more negative rates to three months - The Province


The Treasury has placed this Tuesday2,667 million eurosin the three and nine month auction of letters, something abovel expected average range,and it has done so with a mixed evolution, since the three-month rates have been more negative, but not the return to nine months.

The agency under the Ministry of Economy has held the first auction after the increase in uncertainty in the financial markets due to the confrontation of Italy with Brussels and the resurgence of trade wars, and afterthe Spanish government yesterday revised down the growth forecastfor this year and next.

All in all, investors still rely on Spanish debt securities, since the petitionshave surpassed the 8,300 million euros widely,well above what was finally awarded in the markets.

Specifically, in the three-month auction the Treasury has placed 277 million euros, compared to a demand of 2,327 million, and has done so at a marginal interest rate of -0.636%, so it has charged more to investors than in the previous auction of the same type of paper, held on September 18, when the marginal profitability stood at -0.486%.

In contrast, in the letters to nine months, which have been awarded 2,390 million after a request of more than 6,000 million euros, the marginal rate offered by the Treasury has stood at -0.307%, in this case less negative than -0.386% of the issue held in September.

After the auction this Tuesday, eThe Treasury will once again undergo the scrutiny of the markets next Thursdaywith a new issue of bonds and obligations, with which it expects to capture between 4,000 and 5,000 million euros, the last of this month.

Thus, it will auction a five-year bond, with a 0.35% coupon; a 10-year obligation, which presents a coupon of 1.40%, and two other obligations, with a maturity date of July 30, 2031 and a coupon of 5.75% and October 31, 2046 and a coupon of 2 90%

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