The Public Treasury has placed €5.973.8 million in state bonds and obligations, close to the upper range forecasted, and has raised the yield on all references. Demand doubled the supply, with requests amounting to €11.931 million.
The Spanish Public Treasury has concluded its latest auction for July with a placement of €5.973.8 million in state bonds and obligations, according to data published this Thursday by the Bank of Spain. The figure is close to the upper range anticipated by the agency, which has had to raise the yield on all references to attract investor interest.
Specifically, €2.610 million in three-year bonds were awarded, with a marginal interest rate of 2.871%, compared to 2.775% in the previous auction. The ten-year obligations with a residual life of seven years and three months attracted €1.771.8 million at a rate of 3.301%. Finally, the 30-year obligations placed €1.591.7 million with an interest rate of 4.29%, higher than the 4.078% of the previous issuance.
Demand that doubles supply
Demand has significantly exceeded the amount awarded. In total, offers amounting to €11.931 million were received, nearly double what was ultimately placed. This high demand reflects investors' appetite for Spanish debt, despite the rise in interest rates.
For retail investors, this auction means that the new bonds offer more attractive yields than previous issuances. For example, a three-year bond now yields 2.871%, while a few weeks ago it was at 2.775%. Those who buy these securities today will receive a higher annual interest throughout the life of the bond.
Financing needs for 2026
The Public Treasury anticipates new financing needs of €55.000 million for 2026, the same figure as in 2025. Of that amount, €50.000 million will be allocated to medium and long-term debt (bonds and obligations), and €5.000 million to Treasury bills, according to the Ministry of Economy.
In gross terms, total issuances will reach €285.693 million this year, a 4.2% increase compared to 2025. Of these, €176.935 million corresponds to medium and long-term debt, and €108.758 million to bills. The increase is due to higher amortisations anticipated for 2026.
For taxpayers, this financing strategy implies that the state continues to raise resources in the markets to cover its needs, and the cost of that debt is rising. Anyone considering investing in public debt should compare current rates with other alternatives such as deposits or funds.
Following this auction, the Treasury will return to the markets on 4 August with a new issuance of six and twelve-month bills. It will be an opportunity for investors who prefer shorter terms and yields linked to the evolution of interest rates.
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