Spanish Treasury Concludes September with Bond Auction After ECB Rate Hike

The Spanish Public Treasury is set to conclude September with an auction of government bonds following the European Central Bank's (ECB) recent decision to raise interest rates. The ECB raised its deposit rate by 25 basis points, increasing it to 2.5%, the refinancing operations rate to 2.65%, and the marginal lending facility rate to 2.90%. This is the second time this fiscal year that the reference rate has been increased.

The Treasury will offer government bonds with a residual life of 5 years and 7 months, with a coupon of 0.70%; government bonds with a residual life of 8 years and 1 month, with a coupon of 3.45%, and government bonds for 10 years, with a coupon of 3.40%. The marginal reference interest rates for this auction are set at 2.722% for the 5-year bond, 2.747% for the 8-year bond, and 3.545% for the 10-year bond.

The Treasury has also highlighted the placement of its fourth syndication of the fiscal year, a new 20-year green bond maturing in July 2047. The auctioned amount was €4 billion, against a demand of €68 billion, representing an oversubscription of more than 17 times the awarded volume.