The 'Treasury' does not stop: the interest of the 9-month Letters is close to 3% after the new auction

• Savings Until when the 'Treasury'?

  The yield of the Letters (and the demand) do not touch ceiling

The Public Treasury has placed 1,959.17 million euros this Tuesday in an auction of 3 and 9-month bills, in the expected average range, and has done so by remunerating

investors with

in both references, according to published data by the Bank of Spain.

At a time when private investors are showing great interest in buying this type of debt given its high profitability, which has been growing since the beginning of 2022, the demand in this auction has exceeded 6,365 million euros

plus triple the amount finally awarded.

Specifically, the agency under the Ministry of Economic Affairs and Digital Transformation has placed 508.96 million euros in three-month bills, compared to a demand of 2,204.13 million, and the marginal interest rate has been placed at 2.520 %, above the 2.198% of the previous auction in January and reaching its highest level since July 2012.

THE INTEREST ON THE 12-MONTH LETTERS IS CLOSE TO 3%

In nine-month bills, the Treasury has placed 1,450.21 million, below the 4,161.1 million requested by investors, with a marginal return of

, above the previous 2.839%, and standing at its level highest recorded, considering that this reference was released in February 2013.

After Tuesday's issue, the Treasury will hold an auction of State bonds next Thursday, in which the public body expects

euros.

Specifically, in this last auction in February, the Treasury will issue State Obligations with a residual life of 4 years and 5 months, with a coupon of 0.80%;

7-year State Obligations, with a 0.80% coupon and State Obligations with a residual life of 9 years and 8 months, with a 2.55% coupon.

The marginal references are 2.897% for 7-year State Obligations and 3.313% for State Obligations with a residual life of 9 years and 8 months.

PROFITABILITY THAT ALREADY EXCEEDS 3.5% IN LONG-TERM DEBT

In a context marked by the successive rises in interest rates by both the Fed and the European Central Bank, the Treasury has been increasing the yield offered by the purchase of debt and has even exceeded 3.5%

20-year State

So far in 2023, purchases through the Treasury website from retailers have increased by more than 1,100 million euros, which is triple all acquisitions in 2022.

Even so, from the organism they consider that it is still early to know its degree of incidence on the Spanish public debt.

The latest data released by the Bank of Spain dates from November 2022 when only 0.2% of Spanish public debt was in the hands of private retailers.

According to the Treasury, this percentage will increase in the coming months, but, at the moment, the majority holding of Treasury securities is held by international investors, with 40% of the global, according to the Europa Press agency.

TREASURE TARGETS FOR 2023

According to the 2023 General State Budget (PGE), gross issuance by the Public Treasury this year will be

which represents an increase of 8.2% compared to the estimate for 2022, due to the rise in the interest rates.

For its part, the net indebtedness of the Public Treasury in 2023 will remain at 70,000 million.

Breaking down by type of instrument, the Treasury Bills are expected to provide net negative financing of 5,000 million, so the State bonds and obligations, together with the rest of the debts in euros and foreign currency, will contribute the remaining 75,000 million.

According to the criteria of The Trust Project

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