The demand for the issuance has exceeded 5,587 million euros, with requests that have far exceeded what has been awarded
The Public Treasury has placed 3,970.3 million euros with a new bond and bond issue, achieving lower rates, except in the case of 10-year obligations. Therefore, political uncertainty has not affected the public entity and Spain continues to finance itself cheaper.
As shown, the demand for the issue has exceeded 5,587 million euros, so requests to obtain bonds, once again, have far exceeded what was finally awarded in the markets, confirming that investors continue to rely on securities of the Spanish public debt
This has been the first auction held by the Treasury after the King announced that there is not enough support for any political leader to present a candidate for the investiture and that the acting President of the Government, Pedro Sánchez, confirmed the call for general elections next November 10. A week ago there was the announcement of more economic stimuli by the president of the European Central Bank (ECB), Mario Draghi.
Specifically, the Treasury has placed 1,200 million, compared to a demand of 2,520 million, in 3-year bonds, at a general interest rate -0.452%, more negative than the -0.448% reference of the auction last July 18 .
Likewise, it has captured 1,080 million, compared to a demand of 2,455 million, with 10-year obligations, which have registered a marginal interest rate of 0.222%, greater than 0.190% of the September 5 bid.
In turn, it has issued 885 million in 30-year obligations, compared to a demand of 1,485 million, at a marginal interest rate of 0.372%, much lower than 1,978% of that made on October 18, 2018.
Finally, it has managed to place 805 million, compared to a demand of 1,395 million, in 15-year obligations, reducing the rate of 0.890% of the reference issuance last June 6 to 0.688%.
With the issuance of this Thursday the Treasury concludes the emission calendar for the month of September and will not return to the markets until next Thursday, October 3.
The acting Minister of Economy and Business, Nadia Calviño, announced at the beginning of the month the reduction in additional 10,000 million euros of the net issuance of the Treasury for 2019. This reduction together with that of 5,000 million announced in April, will allow the net issuance this year is the lowest since 2007, placing it at 20,000 million euros.
The planned gross emission is also reduced by the same amount, for the first time since 2011 below 200,000 million euros. Specifically, the planned gross issuance will amount to 194,525 million euros, 8.7% lower than in 2018.