Short-Term Auction (Letras): December 10, 2024
The Spanish Treasury successfully conducted a short-term auction on December 10, 2024, issuing 12-month letras (treasury bills) with a total nominal value of €3,000 million. The auction was well-received by investors, with a bid-to-cover ratio of 4.12.
Auction Results
The letras were auctioned at an average yield of 2.75%, below the 2.92% yield at the previous auction held on November 12, 2024. The minimum yield accepted was 2.73%, and the maximum yield was 2.77%.
The auction attracted strong demand from both domestic and international investors, with domestic banks and asset managers accounting for the majority of the bids.
Market Impact
The auction results were generally seen as positive for the Spanish economy. The relatively low yield on the letras indicates that investors are confident in the country’s economic prospects.
The successful auction also helped to stabilize the Spanish bond market, which has been under pressure in recent weeks due to concerns about the global economic outlook and the political situation in Spain.
Government Financing
The proceeds from the auction will be used to finance the Spanish government’s budget deficit. The government has a financing target of €100,000 million for 2024, and it is expected to issue a significant amount of short-term debt in the coming months.
Conclusion
The successful auction of letras on December 10, 2024, is a positive sign for the Spanish economy. The low yield on the letras indicates that investors are confident in the country’s economic prospects, and the auction helped to stabilize the Spanish bond market.
Short term auction (Letras): 10 December 2024
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