He Public treasury held a new bill auction this Tuesday in which it raised 1,997.76 million euros in 3 and 9 month bills.
Treasury bonds are fixed income securities which do not pay periodic interest in the form of coupons, therefore their profitability or yield is calculated as the difference between the acquisition price and the nominal value or invoice amortization price, that is 1,000 euros.
There is a difference between Treasury bills versus bonds and obligations. The latter have periodic interest in the form of a coupon.
How much are Treasury bills worth?
As indicated by the Ministry of the Treasury, the nominal value or amortization price of Treasury bonds is 1,000 euros. “By purchasing a Treasury bond, an investor acquires, for a price lower or higher than 1,000 euros, the right to receive 1,000 euros upon maturity”, they underline.
What is the profitability of Treasury bonds
When an auction takes place, the Treasury publishes all the data corresponding to that process, including the profitability achieved.
Its profitability or return is calculated as the difference between the purchase price and the nominal value or amortization price of the invoice, which is 1,000 euros.
In 2023, Treasury Bonds attracted great interest from individual investors, with long queues at the doors of the Bank of Spain. However, its profitability has been declining in recent months.
In this Tuesday’s auction, the Treasury channeled 502.41 million with the Letters 3 monthsto whom it was offered to marginal profitability of 3.538%below 3.620%, recorded in the auction of 12 December 2023. Letters for 9 months registered to profitability of 3.492%also below the 3.51% interest rate a month ago.
Calendar of upcoming Treasury bond auctions
The treasure broadcast every month letters at 3, 6, 9 and 12 months on different days. The auction day for letters is Tuesday. One per month is auctioned at 6 and 12 months and another at 3 and 9.
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February 6: 6 and 12 month letters
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February 13: 3 and 9 month letters
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March 5: 6 and 12 month letters
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March 12: 3 and 9 month letters
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April 9: 6 and 12 month letters
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April 16: 3 and 9 month letters
How to buy Treasury Bonds
Buying Treasury Bonds can be done through three channels: in any branch of the Bank of Spain, through the Public Treasury website by accessing the securities trading service option or at financial institutions.
To purchase Treasury bills you need to present a number of documents, such as identification documents or credit account information, among others.
2024-01-16 13:55:00
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