The Public Treasury begins 2023 with a strong issuance of debt in the market.

The Public Treasury has started the year strongly in the debt markets, placing a total of €6,205.196 million in six- and twelve-month bills in its first auction of 2023. This move has been accompanied by a significant increase in interest for one-year bills, which has risen to a marginal interest rate of 2.384%, marking an increase of 0.156 percentage points compared to the auction held last December. This change, although moderate, reflects the shifting dynamics and market expectations in the face of an uncertain global economic environment. The allocation of €4,179.232 million in twelve-month bills has been an important milestone, especially considering that the marginal interest in the previous auction, held in December, was at 2.228%. This increase in the cost of financing indicates the inflationary pressures that still persist and the monetary policy decisions affecting public debt markets. Despite economic volatility, interest in these securities remains high, demonstrating investor confidence in Treasury bills. Regarding the six-month bills, the Treasury has sold €2,025.964 million at a marginal yield of 2.557%. This result is just slightly lower than that recorded in December and reflects stability in demand for this type of debt, which is considered lower risk. The total coverage ratio, which reached €9,284.15 million, shows robust interest from investors despite changes in interest rates. Moreover, it is important to note that the coverage ratio for one-year bills was set at 1.37 times, while the six-month bills reached 1.75 times. This level of demand indicates that investors are willing to acquire more securities than were being offered, which in turn underscores the perception of Treasury bonds as a safe haven in times of uncertainty. The Treasury had planned to place between €5,500 and €6,500 million in this auction, and the result was very much in line with expectations, suggesting that the public administration is adjusting its issuance strategy to align with market needs. This proactive approach is vital, as it allows the Treasury to effectively manage its debt in a constantly changing economic context. The upcoming auction of bonds and obligations, scheduled for this Thursday, promises to be another key moment for the market. The Treasury is expected to issue between €5,750 and €7,250 million, including a new reference for a three-year bond with a coupon of 2.4%. This move aims to diversify the debt portfolio and offer investors more options in their investment decisions. Additionally, the inclusion of fifteen-year inflation-indexed obligations indicates a growing concern about inflation risk, which has led issuers to seek more attractive products for investors. These strategic decisions could have a significant impact on the perception of risk and the profitability of Treasury assets in the future. Looking ahead, the Treasury has also scheduled other auctions for January, including bills for three and nine months, as well as a new bidding for bonds and obligations. This calendar reflects a continuous strategy to capture investors' attention and maintain liquidity in the market, which is crucial for the country's financial stability. In summary, the start of the year has been an active period for the Public Treasury, which has successfully placed a significant amount of debt at interest rates that, although higher than in previous instances, remain competitive. This development not only underscores the Treasury's ability to adapt to market conditions but also the resilience of investors in the face of an uncertain economic landscape. With several auctions scheduled in the near future, the Treasury is in a key position to continue navigating these financial challenges.