Spain sells EUR695m of 1.15% I/L 2036 bonds at auction

Spain successfully auctioned EUR695 million of 1.15% inflation-linked (I/L) 2036 bonds on July 2, 2026. The auction, conducted by the Spanish Treasury, is part of the country’s ongoing efforts to manage its public debt and secure long-term financing. The bonds are indexed to inflation, offering investors protection against rising prices over the 10-year term.

The auction attracted strong institutional interest, with bids submitted through a competitive bidding process. The final yield of 1.15% reflects current market conditions and investor confidence in Spanish sovereign debt. The issuance aligns with the Treasury’s broader issuance goals for the year, as outlined in its public debt management strategy.

This offering follows a larger EUR15 billion issuance of a 10-year, April 2036-dated government bond earlier in the year, which was priced at a yield of 3.323%. The lower yield on the I/L bonds indicates a shift in market expectations and potentially improved borrowing conditions for Spain.

The auction results underscore the stability of Spain’s debt markets and the continued appetite for its securities among international investors.