Investment in Family Letters exceeds the rest of Spanish investors

September data published by the Bank of Spain point to households as the main holders of Treasury Bills. The nominal balance of Spanish families has reached its maximum this month, with a total of 21,352 million euros. Thus, the set of all monetary financial institutions does not exceed the import that households have in Letters, remaining at 21,271 million euros.

Neither banks nor funds have kept pace with household purchases. The latter have gone from having about 19 million euros in their possession in June 2022 to multiplying that amount by more than 1,120 in just over a year, thanks to the fact that short-term public debt has the incentive of the rise in the returns resulting from the restrictive policy of the European Central Bank as of July 2021.

The Bank of Spain has followed the opposite trend as families in terms of Treasury Bills, significantly reducing their balance corresponding to these securities. Thanks to the data provided by the Bank itself, it can be seen that imports in Letters fell from 6,511 million in June of last year to the minimum of 290 million that it reached last July and where it has remained until September.

Foreign investors, second

Foreign investors are second in terms of balance allocated to Letters, with a total of 18,704 million euros in their possession. This August, Spanish households exceeded for the first time the amount in the hands of the rest of the world, which in the summer of 2022 reached more than 47,000 million and at the beginning of that same year reached 56,348 million.

Banks have not altered their investment strategy as pronounced as other institutions, currently holding an amount close to half of what households own in Treasury Bills, 10,764 million euros. The month before the ECB turned towards a restrictive monetary policy, banks far exceeded households and had a total of 12,494 million euros in their possession. This import has been varying and reached its maximum in March of this year with 15,744 million.

Pension funds began to reduce the amount invested in Treasury Bills since the change in monetary policy, going from 3,492 million in the sixth month of 2022 to 1,426 million this September. Although the general trend has been downward, the latest data represents a rebound from the 1,282 million they had in their possession in the month of August.

Insurance companies, on the other hand, have a total of 2,424 million euros in Treasury Bills, according to the figure offered for the month of September by the Bank of Spain. This figure is above the 1,279 million registered in June 2022, after which it increased to 2,146 million in September to always remain above the 2,000 million barrier in the following twelve months.