The profitability of Treasury Bills hits a ceiling below 3.7%

by archynewsycom
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The profitability of Treasury Bills, the main debt asset in the hands of Spanish families, continues to drop and does so for the second consecutive auction with the one held this Tuesday. The Public Treasury placed a total of 3,816 million euros in twelve-month bonds, at an interest rate of 3.680%below the 3.682% it obtained in August and compared to 3.8% in July.

Furthermore, it is striking how the yield required for the twelve-month debt is the same at which the auction of six-month bills has closed, half maturity, at a marginal rate of 3.679%. The Treasury has placed up to €1,124.54 million. In total, the agency under the Ministry of Economy has met its objective and investors have obtained 4,941 million euros in Bills at six and twelve months.

Of that amount, Requests from individuals, which must be awarded, amounted to almost 970 million euros, 19.6% of the total auction held today.

The Treasury will return to the markets this Thursday, with an offer of State Obligations with which it expects to capture between 5,500 and 6,500 million. Specifically, it will offer ones with a residual life of three years and two months, expiring on October 31, 2026, and a coupon of 1.30%. In this case, the reference dates back to September 2017, when an auction was held with the same coupon and then the interest rate was 1.365%, with which a considerable increase in returns is expected, taking into account that the rate refinancing in the Eurozone is at 4.25%.

10-year bonds with a coupon of 3.55% and maturity in October 2033 will also be auctioned. In this case, the reference is from the operation on August 3 in which interest was 3.613%. The ten-year Spanish bond is trading this Tuesday at around 3.6%, after having touched summer lows of 3.48% on August 31. Investors will have 30-year bonds with a coupon of 1.90% and maturity in October 2052. The previous interest rate for a similar operation is 3.985% from the auction held on June 1.

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