The Treasury returns to the market with interest on debt generated after the European Central Bank

Madrid, June 12 (.). The Spanish Treasury will appeal to the market again this week, and it will do so as the profitability of sovereign debt rises after the European Central Bank (ECB) confirmed the end of its debt purchase program and the first rate hike in July.

This week the Treasury will celebrate the last two auctions for June; the first, in the fourteenth, of the Epistles in three and nine months; And the second in the sixteenth of bonds and obligations.

According to the Treasury, on Thursday it will issue five-year government bonds. Fifteen-year bonds, and other bonds with a remaining life of eight years and one month.

These will be the first Treasury bids after this Thursday, the European Central Bank confirmed that it will raise interest rates by 25 basis points in July, the first increase in funds in eleven years, which will be followed by another in September, which is not paid. So far, but it could be raised by 50 basis points.

Similarly, the agency confirmed that before raising interest rates, on July 1, the Asset Purchase Program (APP) will conclude.

And all this with the aim of controlling inflation, which according to the European Central Bank will close this year at 6.8% (5.1% expected in March), while economic growth will be 2.8% (3.7% expected in March).

The European Central Bank’s decisions caused the European bond yields to rise even more. The Spanish 10-year bond yield exceeded 2.6%, new highs since 2014, and the German 1.4%.

This increase will lead to a higher cost financing to the treasury in upcoming auctions.