Laura de la Quintana Madrid

Madrid

Updated Wednesday, January 24, 2024-02:08

A year after Spaniards began en masse to buy Treasury Bills at the doors of the Bank of Spain in the middle of the cold wave in January, the interest of families does not wane, although it has become more selective.

In total,

Spanish households have in their possession one in every three euros of Letters in circulation

.

They hold close to 24,000 million euros, according to the latest data published by the Bank of Spain at the end of November, out of a total that exceeds 72,000 million euros.

If we add to this what the

companies

own , with more than 6,000 million euros, this makes a total between them of almost 30,000 million and the equivalent of 42% of the total.

The search for safe

profitability

is imposed in the face of the non-existence of bank deposits that continue without remunerating savings on the verge of central banks entering the phase of containing interest rates with the first reduction scheduled for June by of the European Central Bank (ECB).

Money in bills from national households marks maximum after maximum, although the truth is that it is not outside the market consensus that already sees a fall in official rates and, therefore, in the interest paid by the debt on the horizon. .

In fact, the most obvious way to look at it is the profitability of the letters.

In the first four auctions of the year held in January, the investor pays more to buy shorter-term securities than those sections that last until the year.

Because?

Simply put, it is assumed that in January 2025 rates will be lower than the current levels of 4.5% in the euro zone.

The interest required on 6-month bills was the highest, at 3.63%, followed by the 3-month tranche (at 3.5%), at 9 months (at 3.49%) and, last, at 12 months, which stood at 3.29%.

In the first auctions of 2024, the Public Treasury has placed a total of 7,054 million euros of the 1,948 million that have gone to individuals, 28% of the total

.

If compared to January of last year, non-competitive requests (those that group together households and individuals who come to the window) amounted to 648.5 million euros, 9% of the total amount auctioned.

Now, the concentration of non-competitive requests in 3- and 6-month bills is becoming more noticeable.

In December of last year the Treasury placed a total of 5,719 million euros, of which 42% ended up in its hands.

Well, individuals concentrated 46% of the three-month debt auction and 78% of the 1,159 million that were awarded for six months.

In January the dynamic repeats itself.

Households obtained 45% of the bills that will expire in April and 61% of those that will expire in July of this year.

In July of last year, Spanish families became the first holder of bills after surpassing foreign investors, who are traditionally the main buyers of Spanish debt.

At the end of November, non-residents continued to reduce their holdings of bills, up to 16,737 million euros, which represents just over 23% of the total.

A year ago this percentage exceeded 58%.

Households have much less money invested in public bonds, with 2,083 million and where they only represent 0.16% of the total.