The last words of the European Central Bank (ECB) on a possible momentary stop in the escalation of interest rates have already been transferred to the market. The Public Treasury has carried out this Wednesday the second auction of Letters since the last meeting of the ECB in which he carried out the ninth rise in the price of money in the euro zone and the trend is confirmed: the yield on public debt has begun a period of calm pending future movements.
For the moment, it is logical to talk about types frozen in recent weeks, beyond drops in profitability because in the last two auctions, although they have occurred, they have been practically derisory. But if there is a change of trend and that is undeniable. Another aspect that demonstrates it is that The profitability offered today by the nine-month letters is higher than the twelve months, 3.7% compared to 3.682% from an auction that took place on August 8. This reflects the fact that investors could already be anticipating a drop in rates in the Eurozone one year ahead.
Total, the Treasury has placed 2,048 million euros in letters at 3 and 9 months, above what was initially forecast, with a drop in the rate that has been required for the nine-month debt. Specifically, the agency has placed up to 1,525 million euros in nine-month debt securities among investors at 3.7% interest, which implies a timid drop compared to the previous auction last July, when it placed it at 3.81%.
Regarding the three-month Letters, the placement was 523 million euros with a yield of 3.535%, and is slightly higher than the 3.531% of the auction last month.
Investor demand has once again exceeded placement expectations, as it has been 3.6 times the amount awarded in the case of three-month bills and almost 2.3 times the auction of nine-month bonds. In total, the market has demanded 5,352 million euros of these titles, mostly in nine-month bills, which always have a higher demand.