Treasury Aims to Raise €6 Billion with Medium and Long-Term Debt Auction
The Spanish Treasury will auction off up to €6 billion in medium and long-term debt this Thursday, aiming to raise funds for its 2026 financing needs. This move comes after the European Central Bank (ECB) raised interest rates by 25 basis points, bringing the deposit rate to 2.5%, the main refinancing operations rate to 2.65%, and the marginal lending facility rate to 2.90%. The Treasury will offer three types of government bonds: those with a residual life of 5 years and 7 months at a coupon of 0.70%; those with a residual life of 8 years and 1 month at a coupon of 3.45%; and 10-year government bonds at a coupon of 3.40%. The Treasury aims to allocate between €5 billion and €6 billion in this auction, marking the first sale after the ECB's rate hike.
The treasury plans to issue €55 billion in new debt for 2026, with €50 billion allocated to medium and long-term debt and €5 billion to Treasury bills. This is consistent with its projections for 2025. The total volume of issuances for this year will amount to €285.693 billion euros, a 4.2% increase from the projected closing for 2025.