Spain returns to the market after the reduction of the ECB forecasts

Spain returns to the market after the reduction of the ECB forecasts

Madrid, Sep 16 (EFE) .- The Spanish public treasury holds two debt auctions next week, one for letters of 3 and 9 months and another for bonds and obligations, the amount of which will be known on Monday and which will be the first after that the European Central Bank (ECB) downgrade the growth forecasts for the euro area.

The president of the ECB, Mario Draghi, explained at a press conference on Thursday that the cut, of one tenth for this year and next, is due to the greater uncertainty in the market due to the increase in protectionism, the vulnerabilities of the emerging economies and the volatility of financial markets.

Draghi also kept the price of money in the euro zone and confirmed that it will reduce purchases of debt by half by October and that it will stop buying bonds in January next year, although it will depend on the inflation outlook.

These auctions take place at a time when Spain has already captured more than 77% of its financing needs for this year.

The first meeting with the markets will be on Tuesday, with a three and nine month issuance of letters, which will foreseeably have negative marginal interests, with which the key will be in the comparison with the returns of the previous auction.

The last time that titles of these denominations were sold, on August 21, 1,755 million euros were placed in total, with slightly more negative interest than in the previous bid, of -0.515% for the three-month period and -0.433 % for those of nine.

On Thursday, September 20 will be the turn of bonds and obligations, although we will have to wait until Monday to know the amount that the Treasury wants to obtain.

In this auction, the Treasury will sell three-year bonds, others that mature in 2022 (4-year residual life), and ten-year bonds and others that mature in 2025.

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