It will also be the first auction since the appointment of Carlos Body, former Secretary General of the Treasury, as the new Minister of Economy.


The Public Treasury will hold this Thursday the first auction of the year with a new issue of State bonds and obligations and obligations linked to inflation with which it plans to raise between 5,750 and 7,250 million euros, according to the issuance objectives published on the page agency website.

It will also be the first Treasury auction since the appointment of its former Secretary General, Carlos Body, as Minister of Economy, Commerce and Business, replacing Nadia Calviño, elected president of the European Investment Bank (EIB).

Specifically, the Treasury will auction this Thursday a new reference for three-year State bonds, with a coupon of 2.50% and maturity on May 31, 2027; Five-year State bonds, with a coupon of 3.50% and maturity on May 31, 2029, and 30-year State obligations, with a coupon of 1.90% and maturity on October 31, 2052.

With these three references, the organization aims to raise between 5,500 and 6,500 million euros, depending on its issuance objectives.

Additionally, the Treasury will today auction State obligations indexed to inflation, with a coupon of 0.65% and a residual life of three years and 11 months, a reference with which it expects to award between 250 and 750 million euros.

With this Thursday’s auction, the organization begins the 2024 issuance calendar after having held the last auction of 2023 on December 12, in which it placed almost 1,742 million euros in 3- and 9-month bills, raising 3-month profitability and cutting the remuneration offered to investors for the 9-month benchmark.

After today’s auction, the Treasury will return to the markets next week with the first issuance of bills of the year. Specifically, on Tuesday, January 9, it will auction 6 and 12 month bills.

The Treasury ended 2023 with a net issuance of 65,000 million euros, which represents a reduction of 5,000 million on the figure initially planned, thanks to the dynamism and greater growth of the Spanish economy.

According to the Ministry of Economy, Commerce and Business Support, the Treasury “successfully” closed its 2023 financing program “with strong demand in all its issues and high investor confidence, despite the complex international context.” .

Thus, total net issuance amounted to 65 billion euros last year, 5 billion less than initially expected, while gross issuance was 252 billion euros.

The reduction in net financing is in line with the Government’s commitment to reduce the deficit and the debt/GDP ratio which, according to the latest estimates, will drop to 108.1% in 2023 and 106.3% in 2024, a drop of 19 percentage points from the peak in 2021.

The Treasury will once again hold liquidity auctions starting this January, through which it will be able to place its treasury surpluses on the market and obtain a greater financial return.

According to the Ministry of Economy, this operation is in line with what other treasuries in the eurozone are carrying out and was a common practice of the Treasury from 2001 to 2017.

Economía recently explained that the increase in interest rates once again makes the active management of the State treasury “attractive” and will allow the Treasury to better manage public resources.

To this end, the Treasury updated the regulatory framework for carrying out these operations. Specifically, excess liquidity balances will be placed on the market through auctions in which financial entities will participate, which at the end of the established period must return the funds received with the agreed interest.