All the auctions of bills, bonds and obligations of the State with which to make money in November
He Public Treasury Spanish returns this week to the debt markets, with auctions of bills and State obligations, which will be the first to be held after the latest decision by the European Central Bank (ECB) to keep interest rates unchanged at 2%.
As the markets took for granted, the ECB has chosen to continue waiting after having stopped in June the easing cycle that cut the price of money by 200 basis points through eight downward adjustmentsthe last seven consecutively.
In this framework, the Spanish Public Treasury will inaugurate the issues for the month of November this Tuesday with a auction of six and twelve month bills. In the last issue of this type, the organization placed 5,632 million and did so raising the profitability offered to investors by 12-month bills above 2%but cutting the interest for the 6-month reference.
Specifically, the six-month marginal interest was placed at 1.958%somewhat below the 1.976% offered in the previous auction of this same type of paper, while the twelve-month profitability rose, in this case, from the previous 1.996% to 2.021%.
After this issue, the Treasury will return to the markets on Thursday, November 6, with an auction of State obligations. Specifically, they will be issued 7-year State obligations, with a 3% coupon; State obligations, with a residual life of 9 years and 9 months, with a coupon of 1.85%; State bonds indexed to euro zone inflation for 10 years, with a coupon of 1.15% and State bonds for 15 years, with a coupon of 3.50%.
The reference marginal interest rates for this auction are 2.929% for 7-year State obligations; at 3.420% for State obligations with a residual life of 9 years and 9 months; at 1.494% for 10-year euro zone inflation-indexed State obligations; of 3.676% for 15-year State obligations
After these two broadcasts The Public Treasury will return to the debt markets on November 11with an auction of 3 and 9 month bills, which will be followed by another on the 20th, of bonds and obligations of the State, with which the month will close.
Funding program for 2025
At the end of September, the Public Treasury announced a cut in its financing needs for this year at 5,000 million euros given the “strength” of Spain’s economic growth, which is why its net debt issuance program goes from 60,000 million initially planned to 55,000 million.
Currently, the average cost of outstanding debt currently stands at 2.28%. That is, only 64 basis points from its all-time low of 1.64% in 2021barely a quarter of the accumulated increase of 250 basis points in official interest rates in the same period.
On the other hand, the average cost of issuance has been reducing in recent months, converging with the average cost of debt in circulation and limiting the upward trend of the latter. So, The average issuance cost for 2025 until August is 2.75%down from 3.16% last year.
All of this has contributed to The financial burden of the State debt on GDP remains contained, around 2%close to its minimum of 1.88% in 2021 and far from the maximum of 2.92% registered in 2014, the Ministry of Economy has highlighted.
Green bond issuance
In 2025, the Treasury has also maintained the objective of diversifying the investor base and has continued betting on the issuance of green bonds as a structural element of the financing program, thus strengthening the sustainable finance market in Spain.
For thisthe Treasury has continued to reopen the green bond issued in 2021 with the aim of reaching a volume similar to that of the rest of the Treasury curve references in the coming years and continuing to contribute to the financing of projects for the ecological transition.
In total, 48 ordinary auctions of bills and bonds and State obligations are planned to be held. Besides, In 2025 the Treasury will once again resort to syndications for the issuance of certain references of State Obligations.
