Bonos and Obligaciones del Estado
Bonos and Obligaciones del Estado (Government Bonds) are Treasury Securities with maturities above two years. Bonos and Obligaciones have exactly the same features, except for their maturity. Maturities of Bonos range from two to five years, while Obligaciones have maturities of more than five years.
The main features of Bonos and Obligaciones del Estado are the following:
- Government Bonds are interest-bearing securities, with annual coupons, as opposed to Letras (which pay all interest at maturity).
- Bids must be made for at least EUR1,000 (Pta166,386), or a multiple of this minimum amount. In addition, the minimum face value to be traded is EUR1,000.
- Government Bonds are issued in consecutive tranches in order to reach a global issue size which may grant high liquidity.
- Issues are made through competitive auctions.
- Coupons are paid on a yearly basis and reflect the "nominal" interest on the security.
The Treasury currently issues Government Bonds with the following maturities:
- Three- and five-year Bonos del Estado.
- Ten-, fifteen- and thirty-year Obligaciones del Estado.