The Public Treasury has awarded 4,930 million euros in short-term maturities on Tuesday. Most of the auction, 4.030 billion euros, has been allocated in letters to 9 months, at a marginal rate of -0.463%. The rest of the auction, 900.29 million have been allocated to 3-month bills, with a marginal rate of -0.492%. The demand has doubled again to the capital finally awarded, and in both issues, the Treasury has managed to set two new historical lows.
Spain continues to take advantage of the low interest rate scenario to finance itself at rates well below its historical average. The fact that a stable government formation has not yet been announced is not affecting debt issuance. Investors are beginning to discount a continuation monetary policy in the hands of the next ECB president, Christine Lagarde.
So far, the Treasury is meeting the funding needs for this year, amounting to 204,500 million. The increase in public spending could cause that if a tax reform is not carried out before the end of the year due to the lack of government formation, it is necessary to increase the public debt issuance to meet the objectives established with Brussels.