The profitability of 12-month bills rises for the first time since March and stands at 2.61%

The profitability of the Letters had been falling for monthsdragged by the rate cuts that the European Central Bank has been carrying out. But this trend was broken this Tuesday: for the first time in 8 months, the interest disbursed by the Spanish Treasury has risen compared to the previous auction. The organization has raised 4,957 million in 6 and 12 month bills, and for the latter it has paid an average interest of 2.61%, exceeding that of last October 1 (when it stood at 2.579%, its lowest level in almost two years). In the secondary market (where securities are exchanged after being issued), 12-month bills have also experienced a rebound, trading at 2.64% (compared to the 2.53% at which they closed last week). .

If in 12-month bills the Treasury has placed 3,440 million euros, at 6 months it has managed to raise another 1,516 million, at an interest that, on the contrary, has been reduced to 2.84%, from 2.869% at the auction. former.

What is now happening with one-year bills is in line with what has been happening in the secondary market with both bills and bonds. October was unfortunate for fixed income, an asset that suffered its worst month since September 2022, in terms of the losses that investors had to assume due to price. The market experienced an oversold of bonds, due to the slowdown in the pace of rate cuts on both sides of the Atlantic. Those sales led the yield on an asset like the US 10-year bond to hit a four-month high of 4.38% (it has currently eased to 4.32%). The profitability of the Spanish bond for a decade, for its part, has recovered 3.12%which I had not seen since the beginning of September. Experts explain that the market he overbraked With these falls, they offer good opportunities to buy debt. What to do with the US bond, halfway between its best and worst moment of the year.

After this Tuesday’s bid, the Treasury will return to the market on Thursdaywhen it will offer investors a new reference five-year bond, 30-year State obligations and other inflation-indexed obligations with a residual life of nine years and one month. The issuance objective in said auction, which will coincide with the Fed’s rate meeting, ranges between 3,750 million and 5,250 million euros, according to the agency. Efe.

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