Spain EUR

Spain 6-Month Letras Auction

Impact:
Low

Latest Release:

Actual:
2.115%
Forecast:
Previous/Revision:
2.255%
Period: Apr 2025

Next Release:

Forecast:
Period: May 2025
What Does It Measure?
The Spain 6-Month Letras Auction measures the Spanish government's cost of borrowing for six months, indicating investor demand for short-term government debt. This national indicator focuses on yield levels and bid-to-cover ratios, assessing the market's perception of Spain's financial health and economic stability over the half-year term.
Frequency
The auction is conducted monthly, with results typically released on a predetermined date within the month.
Why Do Traders Care?
Traders are keenly interested in this auction because it reflects the Spanish government's current borrowing costs, influencing Spain's creditworthiness and fiscal policy. Higher yields can be bearish for the euro due to perceived economic risks, whereas lower yields suggest fiscal stability and can be bullish, with implications for bond markets and potentially stabilizing stocks due to reduced borrowing costs for the government.
What Is It Derived From?
The auction results are derived from competitive bidding by accredited participants, who submit their bids specifying the amount they are willing to lend and the interest rate they expect in return. The yield is determined based on the demand and the average of accepted bids, while the bid-to-cover ratio offers insight into demand levels relative to supply.
Description
The Spain 6-month Letras Auction is a regular event where the Spanish Treasury issues six-month debt securities to raise capital from investors. The auction's preliminary results are posted immediately after bidding, subject to modification as final figures are confirmed, impacting investor expectations and corresponding markets. This auction employs month-over-month (MoM) comparison as it focuses on short-term borrowing conditions, capturing timely changes in market sentiment and cost variations influenced by current economic and geopolitical conditions.
Additional Notes
The six-month Letras Auction serves as a leading indicator of Spain's fiscal posture and liquidity status, helping gauge short-term financial market confidence. It also aligns with bond auctions in other Eurozone countries, offering a comparative view of regional financial stability.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bearish for Euro, Bearish for Spanish Stocks. Lower than expected: Bullish for Euro, Bullish for Spanish 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.

Medium 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 'Forecast' 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
2.115%
2.255%
2.255%
2.355%
2.355%
2.535%
2.535%
2.552%
2.552%
2.84%
2.84%
2.869%
2.869%
3.238%
3.238%
3.252%
3.252%
3.411%
3.411%
3.367%
3.367%
3.543%
3.543%
3.621%
3.621%
3.702%
3.702%
3.653%
3.653%
3.58%
3.58%
3.617%
3.617%
3.709%
3.709%
3.823%
3.823%
3.654%
3.654%
3.639%
3.639%
3.599%
3.599%
3.372%
3.372%
3.129%
3.129%
2.994%
2.994%
3.114%
3.114%
2.675%
2.675%
2.584%
2.584%
2.041%
2.041%
2.003%
2.003%
1.553%
1.553%
0.868%
0.868%
0.449%
0.449%
0.117%
0.117%
-0.078%
-0.078%
-0.351%
-0.351%
-0.55%
-0.55%
-0.572%
-0.572%
-0.47%
-0.47%
-0.574%
-0.574%
-0.689%
-0.689%
-0.666%
-0.666%
-0.633%
-0.633%
-0.58%
-0.58%
-0.595%
-0.595%
-0.586%
-0.586%
-0.576%
-0.576%
-0.556%
-0.556%
-0.562%
-0.562%
-0.524%
-0.524%
-0.551%
-0.551%
-0.579%
-0.579%
-0.61%
-0.61%
-0.563%
-0.563%
-0.511%
-0.511%
-0.466%
-0.466%
-0.48%
-0.48%
-0.506%
-0.506%
-0.485%
-0.485%
-0.287%
-0.287%
-0.039%
-0.039%
-0.509%
-0.509%
-0.476%
-0.476%
-0.457%
-0.457%
-0.448%
-0.448%
-0.477%
-0.477%
-0.498%
-0.498%
-0.563%
-0.563%
-0.534%
-0.534%
-0.496%
-0.496%
-0.392%
-0.392%
-0.397%
-0.397%
-0.384%
-0.384%
-0.375%
-0.375%
-0.372%
-0.372%
-0.428%
-0.428%
-0.401%
-0.401%
-0.419%
-0.419%
-0.434%
-0.434%
-0.425%
-0.425%
-0.419%
-0.419%
-0.399%
-0.399%
-0.468%
-0.468%
-0.488%
-0.488%
-0.469%
-0.469%
-0.461%
-0.461%
-0.472%
-0.472%
-0.459%
-0.459%
-0.407%
-0.407%
-0.415%
-0.415%
-0.378%
-0.378%
-0.386%
-0.386%
-0.438%
-0.438%
-0.41%
-0.41%
-0.416%
-0.416%
-0.398%
-0.398%
-0.366%
-0.366%
-0.302%
-0.302%
-0.365%
-0.364%
-0.327%
-0.327%
-0.282%
-0.282%
-0.326%
-0.326%
-0.265%
-0.265%
-0.255%
-0.255%
-0.246%
-0.246%
-0.145%
-0.145%
-0.264%
-0.264%
-0.142%
-0.142%
-0.114%
-0.114%
-0.061%
-0.105%
-0.069%
-0.069%
-0.098%
-0.098%
-0.007%
-0.007%
0%
0%
-0.014%
-0.014%
0.021%