The Public Treasury has achieved this Tuesday a placement of 6,470.63 million euros in letters for six and twelve months, within the upper-middle part of the set target, also increasing the yield offered to buyers, according to data released by the Bank of Spain.
In a scenario still conditioned by the interest rate hikes of the European Central Bank (ECB) to contain inflation, investors, especially households, maintain a strong appetite for Treasury letters. On this occasion, total requests have reached 9,017 million euros.
In the six-month tranche, the agency has awarded 2,297.11 million euros, against requests of 3,323.05 million, with a marginal interest of 2.798%, above the 2.641% of the previous auction and its highest level since November 2024.
As for the twelve-month letters, the Treasury has allocated 4,173.52 million euros, below a demand of 5,693.91 million, with a marginal yield of 3.026%, higher than the 2.846% recorded in the previous auction and the highest level since July 2024.
After this operation, the Treasury will return to the markets on October 13 with an issuance of letters for three and nine months, to which another auction will be added on October 15, the last of the month, of state bonds and obligations.
FINANCING NEEDS OF 55,000 MILLION EUROS FOR 2026
The Public Treasury estimates new financing needs of 55,000 million euros for 2026, the same amount as in 2025. According to the Ministry of Economy, the debt strategy this year will be conditioned by the good moment of the Spanish economy and by discipline in public accounts.
Of the 55,000 million euros planned in net issuances by the Treasury for this fiscal year, 50,000 million euros will be allocated to medium and long-term debt, that is, bonds and obligations, foreign currency debt, loans, and assumed liabilities, while 5,000 million will be reserved for Treasury letters, the same figures as in 2025.
In gross terms, total issuances this year will amount to 285,693 million euros, 4.2% more than the projected closing for 2025 (274,242 million euros), an increase linked to the higher amortizations that will occur in 2026.
Of that programmed gross volume, 176.935 billion euros correspond to medium and long-term debt issuances, 3.1% more than estimated for 2025 (171.514 billion euros), while for Treasury bills, 108.758 billion euros are contemplated, almost 5.9% above the calculated closing for last year (102.728 billion euros).