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Primary Market

The purchase of securities is made in the primary market when it occurs at the point in time in which the securities are issued and offered to the public. Acquisition of securities in the primary market is also called "subscription".
The competitive auction is the system chosen by the Spanish Treasury to issue all its securities.
This procedure is used both for Letras and for Bonos and Obligaciones. In the latter case, the Treasury holds successive auctions of the same asset (issuance by tranches) until the issue size approaches EUR10bn to EUR15bn. These volumes of outstanding debt of each line grant high liquidity to Government Bonds in the secondary market.
Any investor, be it a private individual or a firm, can submit bids for Treasury Bills or Government Bonds in the auctions, through the "Entidad Gestora" in which the investor wants his/her Treasury Securities to be registered; these bids will be considered purchase orders for the particular asset, according to issue conditions.