By Susana Lima
For the sixth consecutive time, Spain managed to lower the interest allocated to the debt, which in total add up to 24.000 million in January after being awarded 2.506 million euros in short-term letters, accounting for 14% of 2012 total maturities that must be addressed.
The Treasury awarded in the last monthly debt issuance , EUR 2.506 million in letters of which 1.400 were placed at three months with the lowest marginal interest since March 2011, 1.33%, half a percentage point lower than superimposed on the previous bid of 1.88%.
It has also placed 1.106 million to six months with the lowest profitability since June 2011, from 1.9%, which is six tenths below the previous issue of 2.53% .
There are now six consecutive auctions that the Treasury has already organized to reduce the interest on its debt, despite the strong pressure that the market for sovereign debt in the euro area still holds as a result of long and difficult negotiations to resolve Greece's debt.
So far in January, Spain has achieved 24.000 billion euros, 14% of EUR 167,377 millions Treasury maturities should address this year.
In contrast to recent Spanish Treasury issues, this time has not exceeded the amount provided for 2500 million euros despite the demands of the 14,000 million euros that entities have requested, as explained by the analysts, Spain does not need to force loans and has sufficient liquidity.
According to analysts, thanks to the liquidity measures adopted by the European Central Bank (ECB) and the adjustment measures taken by the Government of Spain, the Spanish debt has gained acceptance in the market.
Experts warn that while the ECB has been able to mitigate the sovereign debt crisis, this has not been finally settled.
Jose Luis Martinez Campuzano, a strategist at Citi in Spain, said: The year is long, and in the same way that we initially underestimated the importance of the ECB's liquidity measures to not make the same mistake by giving more importance than it has. The crisis in the euro area goes through a political compromise.
Javier Ferrer, head of the table Savings Corporation debt, said the sensitive situation of the Spanish economy has taken the evolution of its debt, because the market understands "if you don't believe, you can't pay your debts ".
Proof of this is the high threshold that keeps the risk premium of Spain, the additional measures that investors demand for buying Spanish debt rather than German, which is considered safer than before and after the auction is held around 350 basis points.
Another auction of bonds and notes will be held on February 2nd, whose maturity is to be fulfilled, another tender letters to 12 and 18 months will be held on February 14th by the Treasury, and in the 21st another auctions will be held, to three and six months.
The Treasury held an auction of letters to twelve and eighteen months on March 20th and 27th, letters will be three and six months.
