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Public Debt Market Participants

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• The Treasury
• The Bank of Spain
• Account Holders
• Management Institutions
• Market Members
• Market Makers

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•  The Treasury is the issuer of Government Debt securities, and accordingly it is responsible for:
• 1. Drawing up the auctions calendars
• 2. Calling each auction, and setting the annual coupon of bonds
• 3. Resolving auctions, determining the volume and the yield of the securities to be issued
  
  
•  Its function in the debt market is essentially to cover the central government borrowing requirement at the lowest possible cost, while maintaining risk within acceptable bounds.
  
  
•  Its main objectives are:
• 1. To achieve stable financing flows. Requiring:
•  The establishment of a regular, well-publicised issues schedule, with announcement of placement targets
•   Control of refinancing risk by increasing medium- and long-term issues
•  Transparency of information, assured by the drawing-up of issue schedules and notification of the financing strategies
•   Smoothing out the maturities profile of the yield curve through bond exchange programmes and buy-back policies
  
• 2. To reduce the cost of finance. It is accordingly empowered to manage debt issuance by means of:
•  Yield-curve management
•  Buy-back policies
•  Interest rate swaps
  
  
• 3. To ensure an adequate degree of market liquidity.
•  By increasing the amount of issues to over 10 billion euro
•  By exchanging illiquid issues in order to streamline debt references
  
• 4. To offer investors an attractive financial instrument.
  
  
•  By tailoring the assets issued to investor demand (strips, 30-year Obligaciones, credit lines mobilisable via Letras del Tesoro, etc.)