The Public Treasury expects to issue up to €6.5 billion in bills this Tuesday. In the last issuance, the six-month yield rose to 2.798%.
According to La Voz de Galicia, the Public Treasury expects to issue between €5.5 billion and €6.5 billion in a six- and twelve-month bill auction, the first of November. The agency, dependent on the Ministry of Economy, thus sets a range in line with its announced objectives.
In the last issuance of this paper, the Treasury allocated €6.471 billion, within the medium-high range expected, and raised the yield for investors. The six-month bill offered a marginal interest rate of 2.798%, compared to the previous 2.641% and its highest level since November 2024. For the twelve-month bills, the marginal interest rose to 3.026%, from 2.846%, its highest level since July 2024.
The context is one of interest rate hikes by the European Central Bank to curb inflation, which has led the Treasury to offer higher yields, especially on bills, an instrument particularly attractive to households. According to the Bank of Spain, households and non-profit institutions serving households increased their holdings of bills for the sixth consecutive month, reaching €22.509 billion in August.
This week there will also be an auction of state bonds and obligations on Thursday, in which the agency expects to allocate between €4.750 billion and €6.250 billion. Obligations will be offered for 4 years and 9 months, with a coupon of 3.10% and a reference rate of 2.949%; indexed to eurozone inflation for 7 years and 1 month, with a coupon of 0.70% and a reference rate of 1.085%; for 10 years, with a coupon of 3.40% and a reference rate of 4.181%; and for 15 years, with a coupon of 3.50% and a reference rate of 3.817%.
For 2026, the Treasury anticipates new financing needs of €55 billion, the same figure as in 2025. Of these, €50 billion will be medium- and long-term debt and €5 billion will be bills. Total gross issuances will reach €285.693 billion, a 4.2% increase from 2025, due to higher amortisations, and the bills will total €108.758 billion.
The Treasury will return to the markets on November 10 with an auction of three- and nine-month bills. This will be followed by another auction of state bonds and obligations on November 19.
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