The State Treasury posted on Tuesday 1,976.05 million euros in invoices for 3 and 9 months, in the expected average range and has reduced the rewards offered to investors on both links, according to data published by the Bank of Spain.

Investor demand has once again significantly exceeded the amount placed on the markets, and bids at Tuesday’s auction exceeded 4.957 million euros, more than twice the amount of the reward.

The agency subordinate to the Ministry of Economy allocated 502.08 million euros.with letters up to 3 monthsfacing a claim of €1,687.35 million, and The proposed marginal interest rate is set at 3.580%, down from 3.590% in the previous October auction, which achieved the highest percentage since November 2011.

In 9 month letters The Treasury has allocated €1,473.97 million.less than half of the 3,270.27 million requested by investors, with marginal profitability of 3.705%which is lower than the 3.818% offered in the previous edition, which achieved the highest level ever, taking into account that this link was launched in February 2013.

Individual investors continue to show strong interest in buying debt, mainly in the short term, given its high yields, which have been rising since the start of 2022.

In fact, according to the latest data, households and private non-profit institutions serving households grew from 35 million euros in treasury bills in August 2022 to 20.348 million in August 2023, becoming the largest holders of short-term debt of this type. published by the Bank of Spain.

High yields on short-term securities have had a very significant impact on the allocation of Treasury bill holdings, in which households and non-financial institutions have markedly increased their holdings in the past year. quota increase from 0.04% in August 2022 to 28.7% in August 2023.

Forecasts for 2023

The total volume of emissions from the State Treasury this year will be 256.930 million euros.which represents an 8.2% increase over the 2022 forecast due to higher interest rates.

In terms of net emissions, the government announced that they would be cut by 5 billion euros by 2023, thanks to the “good performance” of the Spanish economy and “poor” compliance with budget targets. This will take Spain from a net debt of €70 billion to €65 billion.