Spanish Treasury Prepares Bond Auction After ECB Rate Hike

The Spanish Treasury will conclude September with an auction of bonds following the European Central Bank's (ECB) recent decision to raise interest rates. The ECB last Thursday raised the deposit rate by 25 basis points, bringing it to 2.5%, and increased other key rates as well.

Before the auction, the Treasury will offer government bonds with different maturities: five years and seven months, eight years and one month, and ten years. The marginal reference interest rates for these auctions are set at 2.722%, 2.747%, and 3.545% respectively.

The Treasury's financing needs for 2026 remain unchanged at €55 billion, with most of that coming from medium- and long-term debt. This year's net issuances are expected to reach €50 billion, while gross issuances will total around €285.7 billion, a 4.2% increase compared to last year.