Spanish families are clear that the best alternative for your savings resides in Treasury Bills, which offer the highest yields of the last eleven years, compared to the zero offer in deposits of the big banks, despite the fact that the pressure (social and governmental) resonates with greater force every time. Until the last auction carried out by the Treasury this Tuesday in titles at 6 and 12 months, Spanish households have asked and, therefore, acquired (since they are mandatory allocation for individuals) a total of 10,096 million euros in Bills, the equivalent of 21% of the total issued by the Treasury since January. And these are historical figures.
The lack of alternatives for saving has fueled the fever by the investment in State debt since never before had two casuistries come together: a scenario of interest rate rises so sharp and of such magnitude in the Eurozone and, taking this context as Background curtain, the refusal of banking entities to remunerate their liabilities, whatever the reason behind. In this case, it responds to excess liquidity in the sector after years of open bar from the European Central Bank (ECB).
The point is that Spanish homes have become the great buyer of Letters, when a year ago they had practically nothing. Until yesterday, the Treasury had issued a total of 47,224 million euros in these short-term titles (with a maturity of three to twelve months) in the 25 auctions held so far. This represents 56% of the issuance objective for the whole year, which amounts to 84.3 billion euros. Only at yesterday’s auctionnon-competitive requests, which as a general rule correspond to private citizens, touched the 1,000 million euros, out of a total awarded of 5,268 million. Spanish households were made with 324 million in Bills at six months and with 621 million at twelve. And they did it to the greatest guys who can be remembered since July 2012, exactly eleven years.
The Bills that will expire next summer were placed at a marginal rate of more than 3.8%, which means that for an investment of 10,000 euros, the profit to be obtained will be 380 euros, before going through the Treasury and without subtracting the commissions charged by either the Bank of Spain or the broker acting as an intermediary. “The strong interest of retail investors continues to stand out, although it has stabilized in the last Letras auctions. As an approximation of their participation, the bids of these individuals have represented 18% of the issue,” he said yesterday through a statement the Public Treasury.
The trend is very clear and although today the requests in twelve-month bills double what they were in January, The interest of Spanish households in this type of product continues to be high, but their investments are less and less, among other reasons, because savings are also running out.