Spain 9-Month Letras Auction

Info

History

Chart

Impact:

Low

Next Release:

Date:

Period:

What Does It Measure?

The 9-Month Letras Auction in Spain measures the government's ability to raise funds through the issuance of short-term debt securities known as letras del tesoro. It primarily focuses on investor demand, interest rates, and the overall fiscal health of the Spanish economy by assessing the interest rate at which the government borrows money.

Frequency

This auction is conducted regularly, typically on a monthly basis, with specific dates announced well in advance. The results are released shortly after the auction concludes, usually within the same day.

Why Do Traders Care?

Traders pay close attention to the results of the 9-Month Letras Auction as they indicate the market's confidence in Spain's creditworthiness and fiscal policy. Higher-than-expected demand and lower yields are seen as positive signals for Spain's economy, potentially strengthening the euro and impacting bond markets positively.

What Is It Derived From?

The auction results are derived from bids submitted by various investors, including banks, asset managers, and private individuals. The calculation involves evaluating the total amount of bids received against the total amount issued, determining the allocation of bonds, and the resulting interest rates established during the auction.

Description

The 9-Month Letras Auction is a vital gauge of short-term borrowing costs for the Spanish government and reflects investor sentiment toward the fiscal health of Spain. It serves as a timely indicator of liquidity conditions in the capital markets and can influence monetary policy decisions by the European Central Bank, particularly in relation to Spain's economic stability.

Additional Notes

This auction is considered a coincident economic measure, as it provides real-time insights into government financing conditions and investor confidence. The demand observed in the auction can also serve as a precursor to trends in longer-term debt issuance and overall economic growth or contraction in Spain.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for EUR, Bullish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Time	Actual	Forecast	Previous	Surprise