He Public Treasury leaves one of lime and another of sand in its first auction of the new year 2025. This January 7, the agency dependent on the Ministry of Economy returns to the market in a new interest rate scenario that does not equally affect the profitability of the Letters at 12 months and 6 months. If the former closed the year at the levels of the end of 2022 in a sharp fall, today they recover and their interest increases to 2.384%. The Letters to 6 months continue to decline and remain at 2.557%, the lowest level since December 2022, according to data from the Bank of Spain.
Thus, despite gradually reducing the profitability of emissions, in parallel with the decrease in interest rates of the European Central Bank (ECB), investors continue to show interest for the Spanish titles, given that the joint lawsuit of both issues has exceeded 9,284 million euros.
Specifically, the body dependent on the Ministry of Economy has placed 2,025.96 million euros in six-month bills, compared to a demand of 3,538.63 million euros, and the marginal interest has been placed at 2.557%, below of 2.585% offered in the previous auction of the same type of paper.
In the twelve-month bill auctionthe Treasury has awarded 4,179.23 million euros, also below the requests of more than 5,745 million, and the marginal profitability has risen from the previous 2.228% to the current 2.384%.
New Treasury Bill auctions
Today’s is first auction of Treasury Bills of the year. The next appointment with the Treasury this January will be next Tuesday, January 14 to obtain 3 and 9 month bills.
How many Treasury Bills are in the hands of families?
The Families owned 37.4% in May of all Treasury bills in circulation (72,397 million). The figure for May, 27,094 million, almost doubles that recorded in the same month of 2023 (14,497 million).
The outstanding balance of Treasury bills in the hands of households has maintained an almost constant upward path since the beginning of the year, with the exception of February, when it fell by 50 million.
The figure went from 24,664 million in January to 24,614 million in February, its only drop. From that moment on, it increased to 25,823 million in March; 26,650 million, in April; and 27,094 million, in May.
How to buy Treasury Bills
The Treasury Letters auction every monthin separate sessions for the terms of 6 and 12 months, on the one hand, and 3 and 9 months, on the other. To buy them, the first step to follow is to access the Public Treasury website and open a ‘Direct Account’ at the Bank of Spain. If you have an electronic DNI or digital certificate, the client can make the purchase directly through the internet, selecting the security they want to purchase in the ‘Purchase and Sale of Securities’ section and transferring the amount. Another option is to go in person to a Bank of Spain branch with an appointment, which can be made online.
What is the profitability of Treasury Bills?
Citizens do not know what profitability the Letters will offer in the next auction when making a purchase offer, so there is the option of indicating the minimum interest rate for which you are willing to make the purchase, but you run the risk of being left out of the auction if it closes with a lower type. Most buyers choose to make non-competitive offers and keep the price that appears in the auction, without imposing conditions.
What is the amount of each Treasury Bill?
He nominal amount of each Letter is 1,000 euros, therefore, the investment will always be this amount or a multiple of it. Treasury Bills do not follow the same system to receive interest as other savings products, since they are discount issues. This means that, at the time of issuance, these securities are acquired at a price lower than the nominal price, in order to receive the 1,000 euros as payment at maturity, the difference between the two amounts being the profitability obtained. For example, if a Bill is purchased at 3%, 970 euros will be paid when purchasing it at auction so that the Treasury will later return 1,000 euros.
Treasury Bill Prices
In case you need get the money back invested before the end of the established amortization period, the Letters can be sold without having reached their maturity, but the client could lose money depending on how the rates offered by the Public Treasury have advanced since their purchase. If the Letra was acquired with a lower profitability than that offered by the public body at the time of sale, the price that will be willing to pay for the title in the secondary market will be lower than that of the initial purchase.
How to declare the profits obtained in the Letters
The profits obtained from this type of issues are considered returns on movable capital and are, therefore, subject to the Capital Tax. Personal Income (IRPF). The same tax will be applied as to any savings income, depending on the amount obtained. Thus, the first 6,000 euros will have a rate of 19%, between 6,000 and 50,000 euros it will be 21%, 23% between 50,000 and 200,000 euros and 28% for amounts exceeding this last number.
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