Spain starts the year by placing €10bn: twice the expected, at lower rates

MADRID | Europa Press | The Spanish Treasury managed to successfully close the first auction of the year by placing almost €10bn in bonds, twice the expected amount and at lower than expected rates, thus continuing the good streak of the previous issuances.

The agency’s expectations were far exceeded by the result as in the last auction. It had only expected to obtain between €4bn and €5bn. The demand was again elevated and it went above the €18.5bn. To be specific, the Treasury placed €4,271.77 million of the €7, 677.28 demanded by investors in bonds at three years. In this case the marginal interest was moderated and went from 4.058% to 3.576%. Also, the agency placed €2,503.18 million of the €5,532.18 demanded in bonds maturing on 30 April, 2016 and a coupon of 3.25%. The average interest was moderated to 3.748% from the 4.871% of the previous auction.

Furthermore, it placed €3.211,22 million of the €5.492,32 million demanded by the market in bonds payable on the 31 of October 2016 with a 4.25% coupon. In this case the average interest went all the way down to 3.912% from the previous 4.848%. These are the results of the Treasury’s first auction of the year and of the Rajoy era, confirming the welcome that the markets are giving to the first deficit reduction measures taken by the new government. The risk premium has again become more moderate, placed below the 340 basis points after learning the results of the auction.

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