The Treasury places 2,253 million euros in the last auction of the year and increases the profitability of the three- and nine-month bills
He Public Treasury has placed this Tuesday 2,252,548 million euros in an auction of three- and nine-month billsin the expected mid-range, and has done so by raising the marginal profitability offered to investors by both references, according to the result of the issue published by the Bank of Spain.
With this auction, The Treasury has closed the emissions for the year 2025, since the one planned for December 11 -of State bonds and obligations- has been canceled as usual this month.
The public body dependent on the Ministry of Economy has received for this last auction of the month of December a demand of 4,392.8 million euroswhich has not managed to double what was finally awarded in the markets.
Specifically, it has placed 816,181 million euros in three-month bills, compared to a demand of 1,751.432 million euros, and the marginal interest has been placed at 1.999%, above the 1.926% offered in the previous auction of this same type of paper.
In the auction of nine-month bills, The Treasury has awarded 1,436.367 million euros, also below the requests of more than 2,641,367 million, and the marginal profitability has risen from the previous 1.976% to the current 2.016%.
Funding program for 2025
At the end of September, the Public Treasury announced a cut in its financing needs for this year by 5,000 million euros given the “strength” of Spain’s economic growth, Therefore, 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%. This isjust 64 basis points from its all-time low of 1.64% in 2021, barely 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 keeping the financial burden of the State debt on GDP 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.
The commitment to green bonds is consolidated
In 2025, the Treasury has also maintained the objective of diversification of the investor base and has continued to support the issuance of green bonds as a structural element of the financing program, thus strengthening the sustainable finance market in Spain.
To this end, the Treasury has continued to reopen the green bond issued in 2021 with the objective of reach a volume similar to that of the rest of the Treasury curve references in the coming years and continue contributing to the financing of projects for the ecological transition.
In total, it is planned holding 48 ordinary auctions of bills and bonds and State obligations. Furthermore, in 2025 the Treasury will once again resort to syndications for the issuance of certain references of State Obligations.
