The Treasury cancels the auction of bonds and obligations on December 14

The Public Treasury has decided not to call the auction of State bonds and obligations that was scheduled for next December 14, the last of the year, as reported by the body dependent on the Ministry of Economy, Commerce and Business.

In this way, in this last month of the year the Treasury plans to call a total of three auctions on December 5, 7 and 12. Specifically, on the 5th bills for 6 and 12 months will be auctioned; 7, State obligations and 12, 3 and 9 month bills. Thus, next week the Public Treasury will auction 6 and 12 month bills, in addition to State obligations, thus opening the issues corresponding to the month of December. Specifically, the Treasury will auction six- and twelve-month bills on Tuesday, while on Thursday it will issue 3 different references of State obligations.

In the last issuance of six- and twelve-month bills on November 7, the Treasury placed 4,272.32 million euros, cutting the profitability offered to investors in both references. Specifically, for 6-month bills, the Treasury offered a marginal profitability of 3,747%, below the previous 3,830%, when the highest since 2012 was reached.

For its part, in the auction of twelve-month bills, the agency dependent on the Ministry of Economy awarded 3,269.64 million euros, with a marginal interest of 3.630%, below the previous 3.876%.

Medium and long-term debt will be auctioned on Thursday

After the first auction of the month, which will be held on Tuesday, the Treasury will return to the markets on Thursday with a medium and long-term debt issue.

Specifically, the organization will auction State Obligations with a residual life of 5 years and 11 months and a coupon of 0.60%; Inflation-indexed State Obligations with a residual life of 10 years, with a coupon of 0.70% and 15-year State Obligations, with a coupon of 3.90%.

After this auction, the Treasury will return to the markets on December 12 with an issue of 3- and 9-month bills with which it will close the year, since the one scheduled for December 14 has been canceled.

Spain will reduce the planned debt issuance by 5,000 million

The gross issuance by the Public Treasury will be 256,930 million euros this year, which represents an increase of 8.2% compared to what is estimated for 2022, due to the rise in interest rates.

Regarding net issuance, the first vice president and Minister of Economic Affairs, Nadia Calviño, announced that Spain will reduce the debt issuance planned for 2023 by 5 billion euros thanks to the “good progress” of the Spanish economy and compliance. “loose” fiscal objectives.

With this, Spain will go from a net debt issue of 70,000 million to 65,000 million, which puts the country in a position of “resilience and strength in this context of rising interest rates,” according to Calviño.