Economy: Spain posts 4.526 million euros in more expensive bonds for Catalonia

Spain starts paying for bonds three years after several negative auctions.

Spanish Treasury has raised 4.526 million euros in bonuses and bonds on Thursday that have been more expensive than on previous occasions, due to the threat of the threat of the Catalan president, Carles Puigdemont, to declare independence if the government activated the 155.

Of the total, 1,807.17 million have been three-year bonds, again with a marginal positive interest of 0.074%, compared to -0.014% previously. Also, 1,018.32 million in 10-year bonds were issued at 1.639%, higher than the previous 1,548%, as has been the case for 30-year bonds, of which 735.34 million were placed at 2.83%, compared to the previous 2,789%. On the contrary, another 965.21 million have come out in an old 15-year bond reference, with an interest of 1.144%, the only somewhat lower than the 1.365% previously.

The agency under the Ministry of Economy, Industry, and Competitiveness had set an objective of between 4,000 and 5,000 million euros, so the amount awarded has been slightly above the expected average range. In addition, the demand has reached 6.886 million euros, which is 1.52 times more than the amount awarded. It is the last auction in October and the fourth in which the Treasury has come to market after the holding of the referendum on independence in Catalonia convened by the Generalist on 1 October.

Despite the greater uncertainty about developments in Catalonia, which have even led the government to cut the growth estimate by three tenths for 2018 to 2.3%, markets have continued to rely on Spanish public debt in the fourth auction held after the referendum on independence on 1 October. However, the risk premium has been above 120 basis points and the Ibex 35 has fallen more than 1% following Puigdemont's response.