Spanish public treasury


The Public Treasury is a public body in charge of centrally managing the financing flows of a State.

It is in charge of proposing and executing the guidelines and economic policy measures proposed by the Ministry of the Economy.

The Public Treasury has different functions in each country, but its common function is to obtain financing for the State through the issuance of debt.

The Public Treasury makes available a series of public debt securities of the State, as well as a detailed description of the characteristics of the products and their tax implications as well as the result of the debt auctions and the disclosure of their publication.

Functions of the Public Treasury

The most important functions of the Public Treasury are the following:

  1. It allows the purchase and sale of debt securities of the Public Treasury.
  2. It is a financing instrument of the State.
  3. It serves as a tool for economic and social policy.
  4. It allows to attract both national and foreign investors. It is a very important financial flow.
  5. It watches over good practices in the investment of debt securities.
  6. It allows to operate directly through electronic platforms, in the option of the securities purchase and sale service, or through financial entities or investment agencies.

Public Treasury debt securities

The Public Treasury debt securities tradable in the secondary public debt market are the following:

  • Treasury bills: They are short-term fixed income securities (3-6-9 and 12 months), they are issued in the primary market through auctions. Generally, 3- and 9-month Letters are auctioned on the fourth Tuesday of each month and 6 and 12-month Letters are generally auctioned on the third Tuesday of each month.
  • Bonds and Obligations: They are medium and long-term fixed income securities, issued through auctions. Bonds and obligations have the same characteristics and work the same, the only difference is the terms.
    • Bonds: 2, 3 and 5 years, generally auctioned on the first Thursday of each month.
    • Bonds: 10, 15 and 30 years old, generally auctioned on the third Thursday of each month.

Public Treasury Auctions

When the Treasury conducts an auction, it first requests a prior deposit, this deposit is applied to the nominal amount to be invested and must be taken into account when making the subscription. Once the auction is held, we know the effective price of the security and the difference between the previous deposit and the effective price, it is returned to the investor a few days after the auction is held, in the credit account provided, without applying any commission.

In the Public Treasury auctions we can know the following characteristics and the calendar of each security that is negotiated:

  • Auction dates.
  • Expiration dates.
  • Settlement date.
  • Nominal requested.
  • Nominal awarded.
  • Minimum price accepted.
  • Marginal interest rate.
  • Half price.
  • Average interest rate.
  • Awarded to the marginal.
  • First price not admitted.
  • Previous marginal type.

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