Post by account_disabled on Feb 21, 2024 20:58:13 GMT -10
Crisis scenario in the Government. The economic leadership in Moncloa is worried: Greece is no longer the only cause of the rise in the Spanish risk premium these days. The arrival of populism in city councils has caused, for example, that the margin with the Italian bond has narrowed and that the Treasury has had to pay again to place the debt.
As El Confidencial Digital has learned from Government sources, La Moncloa does not hide its concern over the rise in the risk premium in recent days.The president's economic team receives daily reports from the Treasury . In some of these latest documents it is pointed not the only Denmark Mobile Number List focus of concern of the large funds when they refer to Spain. The seizure of power and some of the messages from the new municipal leaders supported by Podemos are alarming investors.Among the negative data that political instability is already causing in the Spanish economy, the reports that are reaching La Moncloa highlight the following aspects:
Having to pay again to place the debThe Treasury returned to the market this Tuesday with the objective of placing between 3,500 and 4,500 million euros in 6 and 12 month bills. The auction of 6-month bills held last April went down in history as the first with negative interest rates . The average profitability was then
A month later, the auction on May 12 also ended with a negative return of 0.002%. But this Tuesday the Treasury has not been able to collect on its debt : it has had to pay an average interest of 0.126% to place its 6-month bills.In addition, it has also had to increase the cost of financing its debt to 12 months. In the previous placement, on May 12, the average profitability was limited to 0.015%, practically at zero cost . This Tuesday, however, the average interest rose to 0.248%.
In areas of the Executive, they assume that the rise in financing costs will also be transferred to the auction scheduled for this Thursday , in this case focused on medium and long-term securities. The Treasury's plans include allocating a maximum of 3.5 billion euros in bonds for three, five and ten years.
The margin has narrowed with the Italian bondAnother parameter that has not been overlooked is that the debt profitability differential between Spain and Italy has also narrowed significantly .This is another sign, they say, that “investors are giving Spain a greater blow compared to the rest of the countries in the eurozone as a whole due to the instability of the new municipal governments. Even more than Italy, where there are greater economic imbalances.”
This situation, as ECD has learned from sources familiar with the contacts, has mobilized the Government to try to prevent the sales of Spanish debt from increasing and ensure that they do not become a trend.This situation prolonged over time would trigger the risk premium again ,” warn officials from the economic leadership of the Executive consulted by this confidential. Senior economic officials are highlighting these days to North American and Asian investors , in contacts they are maintaining, the great differences between the Greek and Spanish scenarios.
As El Confidencial Digital has learned from Government sources, La Moncloa does not hide its concern over the rise in the risk premium in recent days.The president's economic team receives daily reports from the Treasury . In some of these latest documents it is pointed not the only Denmark Mobile Number List focus of concern of the large funds when they refer to Spain. The seizure of power and some of the messages from the new municipal leaders supported by Podemos are alarming investors.Among the negative data that political instability is already causing in the Spanish economy, the reports that are reaching La Moncloa highlight the following aspects:
Having to pay again to place the debThe Treasury returned to the market this Tuesday with the objective of placing between 3,500 and 4,500 million euros in 6 and 12 month bills. The auction of 6-month bills held last April went down in history as the first with negative interest rates . The average profitability was then
A month later, the auction on May 12 also ended with a negative return of 0.002%. But this Tuesday the Treasury has not been able to collect on its debt : it has had to pay an average interest of 0.126% to place its 6-month bills.In addition, it has also had to increase the cost of financing its debt to 12 months. In the previous placement, on May 12, the average profitability was limited to 0.015%, practically at zero cost . This Tuesday, however, the average interest rose to 0.248%.
In areas of the Executive, they assume that the rise in financing costs will also be transferred to the auction scheduled for this Thursday , in this case focused on medium and long-term securities. The Treasury's plans include allocating a maximum of 3.5 billion euros in bonds for three, five and ten years.
The margin has narrowed with the Italian bondAnother parameter that has not been overlooked is that the debt profitability differential between Spain and Italy has also narrowed significantly .This is another sign, they say, that “investors are giving Spain a greater blow compared to the rest of the countries in the eurozone as a whole due to the instability of the new municipal governments. Even more than Italy, where there are greater economic imbalances.”
This situation, as ECD has learned from sources familiar with the contacts, has mobilized the Government to try to prevent the sales of Spanish debt from increasing and ensure that they do not become a trend.This situation prolonged over time would trigger the risk premium again ,” warn officials from the economic leadership of the Executive consulted by this confidential. Senior economic officials are highlighting these days to North American and Asian investors , in contacts they are maintaining, the great differences between the Greek and Spanish scenarios.