Public debt is attractive for Spanish households once again. Families find profitability in treasure lettersbonds and government obligations, raising its investment in bills by just over 9,000 million euros during the first quarter of the year, reaching 10,847 million euros, breaking the barrier of 10,000 million.
In fact, according to the data updated by the Bank of Spain, at the end of 2022, Spanish families accumulated 1,826 million euros in State paper, which represents a important growth Over the previous year. It has increased exponentially since in January it reached 3,695 million and in February, 7,713 million.
In the first quarter of this year and at the end of March, possession of Treasury bills reached 10,847 million euros, which means 9,021 million more than at the end of 2022. In addition, this trend of bills in the hands of Spanish households, in March of last year, only 15 million euros were registered.
Higher profitability of Treasury bills
On the other hand, in recent months and as a consequence of the rise in interest ratesthe State debt, above all, the Treasury bills, has aroused a lot of interest among individuals as a form of investment. And it is that this type of debt is offering a return much higher than that given by other financial products such as bank deposits.
In the auctions held by the Treasury in this month of May, the three-month bills offered a marginal interest of 3.09%; and nine-month bills, 3.22%. Similarly, the yield offered on six-month bills was 3.143%; and those of twelve months, 3.247%.
The BdE updates the bonds and obligations of the State
At the beginning of the year, the Secretary General of the Treasury and International Financing, Carlos Cuerpo, already assured that the organization had begun to observe “a renewed interest” due to the purchase of fixed income by individuals, domestic financial institutions and non-residents. A fact that he attributed to the higher profitability they offered after the change in monetary policy by the European Central Bank (ECB).
“A higher profitability, demand reacts,” said the ECB
“A more profitability, the demand reacts,” he said. In addition, the Bank of Spain has also updated the data on government bonds and obligations in the hands of Spanish households which, although it has grown, has done so very slightly, since this type of debt has longer maturities. Thus, in the first quarter of the year, households accumulated 1,652 millions of euros in bonds and obligations, 245 million more than at the end of 2022.
