Introduction: Investors with a conservative approach continue to find Treasury Bills, especially short-term ones, a path to substantial returns on their savings. The correlation between their performance and inflation, coupled with the European Central Bank’s interest rate hikes, has led to an increasing number of individuals trusting these assets to safeguard their purchasing power.
Strong Start to the Year: The year has kicked off with a robust beginning. The first Treasury Bill auction of 2024, held on January 9th, successfully placed a total of 5,056.1 million euros. The remuneration offered for six months saw a significant increase, while the one-year offering experienced a reduction. Additionally, the auction of bonds and obligations attracted 6,892 million euros, albeit with lower yields compared to previous auctions.
The Treasury placed 1,036.65 million euros in six-month Treasury Bills, against a demand of 2,572.65 million euros, offering a marginal yield of 3.635%, slightly higher than the previously recorded 3.620%.
In terms of the average interest rate, as per the Bank of Spain data, it stood at 3.58%. Meanwhile, the marginal yield for 12-month Treasury Bills has decreased, reaching its lowest level since May 2023, dropping from 3.327% to 3.314%. The average interest rate settled at 3.293%. The 12-month auction placed 4,019.45 million euros, with investor requests reaching 6,151.33 million.
Treasury’s 2024 Auction Calendar: For the current year, the Public Treasury plans to issue a total of 55,000 million euros in new debt, marking a reduction of about 10,000 million euros from 2023. This unfolds amidst the surge in the European Central Bank (ECB).
Examining the calendar, a notable event is scheduled for January 16th, featuring Treasury Bills with maturities of 3 and 9 months, with redemption dates on April 12th and October 4th, respectively. The submission deadline to the Bank of Spain is January 15th, with issuance on January 19th.
In February, key dates include the 6th and 13th, with auctions for 6 and 12-month Treasury Bills on the former and 3 and 9-month Bills on the latter. Issuance is set for February 9th and 16th, respectively.
March brings a 5th date for 6 and 12-month Treasury Bills, with issuance on March 8th, while March 12th sees the auction of 3 and 9-month Bills, with issuance on March 15th.
The April agenda features auctions on the 9th and 16th, covering 6 and 12-month Treasury Bills (issuance on April 12th) and 3 and 9-month Bills (issuance on April 19th).
May brings a 7th date for 6 and 12-month Treasury Bills (issuance on May 10th) and a 14th date for 3 and 9-month Bills (issuance on May 17th). June stands out with the 4th and 11th dates, featuring Treasury Bills with maturities of 6 and 12 months and 3 and 9 months, respectively. Issuance dates are June 7th and June 14th.
July hosts two auctions on the 2nd and 9th, covering 6 and 12-month Bills (issuance on July 5th) and 3 and 9-month Bills (issuance on July 12th). August features a 6th date for 6 and 12-month Bills (issuance on August 9th) and a 13th date for 3 and 9-month Bills (issuance on August 16th).
September offers a 3rd date for 6 and 12-month Bills, with issuance on September 6th, while the 10th brings an auction for 3 and 9-month Bills, with issuance on September 13th. October highlights the 1st and 8th dates, featuring auctions for 6 and 12-month Bills (issuance on October 4th) and 3 and 9-month Bills (issuance on October 11th).
Moving to November, a 5th date features auctions for 6 and 12-month Treasury Bills, with issuance on November 9th, and a 12th date for 3 and 9-month Treasury Bills, with issuance on November 15th. The year concludes in December with an auction for 6 and 12-month Bills on the 3rd (issuance on December 6th) and for 3 and 9-month Bills on the 10th (issuance on December 13th).
As for January 2025, two dates are set for the 7th and 14th, with auctions for 6 and 12-month Bills (issuance on January 10th) and 3 and 9-month Bills (issuance on January 17th), respectively.
Acquiring Treasury Bills: To purchase Treasury Bills, simply access the Public Treasury website and open a ‘Direct Account’ at the Bank of Spain. If you have an electronic ID or digital certificate, you can make the purchase directly in the ‘Buy and Sell Securities’ section. Alternatively, you can visit the Bank of Spain in person.
Conclusion: This comprehensive guide provides conservative investors with insights into the 2024 Treasury Bill emission calendar, empowering them to make informed decisions. As market dynamics evolve, staying abreast of the Treasury’s auction schedule becomes paramount for investors seeking stability and returns. For the latest updates and in-depth analysis, explore the world of Treasury Bills with authoritative sources like the Bank of Spain.