Key data
| Regulation | Resolution of September 11, 2026, from the General Directorate of the Treasury and Financial Policy |
|---|---|
| Publication | September 15, 2026 |
| Entry into force / Auction date | September 17, 2026 |
| Issuance date | September 22, 2026 |
| Affected parties | Institutional investors, Market Makers and financial entities participating in public debt auctions |
| Category | Regulatory Changes — Public Debt |
| Admission market | AIAF Fixed Income Market |
| Type of securities | Strippable bonds (State Bonds) |
The Spanish Treasury activates in September 2026 three new long-term financing windows through the expansion of existing State Bond references. The Resolution of September 11, 2026 from the General Directorate of the Treasury and Financial Policy convenes the auctions for September 17, 2026, with issuance on September 22. For institutional investors and financial entities, this call defines the terms, coupons and yields available in the long end of the Spanish sovereign curve.
What does this regulation establish?
The resolution convenes the auction of three State Bond references, all of them expansions of existing issues that are managed as a single issue from their issuance. Below is the complete detail of each reference:
| Reference | Annual coupon | Maturity | Indicative gross yield | Approx. term |
|---|---|---|---|---|
| State Bonds (expansion) | 0.70% | April 2032 | 3.27% | ~5.5 years |
| State Bonds (expansion) | 3.45% | October 2034 | Included in the range 3.27%–4.14% | ~8 years |
| 10-year State Bonds (expansion) | 3.40% | October 2036 | 4.14% | ~10 years |
The three issues are expansions of references already in circulation, which guarantees secondary market liquidity from the outset. All securities have the classification of strippable bonds, which allows the separation of coupon flows from principal for independent trading. Admission to the AIAF Fixed Income Market occurs ex officio, without additional procedures required by the investor.
The Market Makers have exclusive access to the second rounds, awarded at the marginal price resulting from the first round. This reserved mechanism reinforces their role as liquidity providers in the secondary market.
Economic and operational impact
For entities managing sovereign fixed income portfolios, this auction presents three differentiated entry points on the Spanish curve:
- Short-medium term (2032, 0.70% coupon): The 3.27% yield implies a significant premium over the nominal coupon, which translates into an issuance price below par. Suitable for short-term carry strategies or reduced duration management.
- Medium term (2034, 3.45% coupon): The coupon approaches market yield, with less discount to par. A balanced reference for medium-duration portfolios.
- Long-term 10-year (2036, 3.40% coupon): With the highest yield in the group (up to 4.14%), this reference offers the greatest return potential but also the greatest sensitivity to rate movements. It is the "benchmark" reference of the call.
The fact that these are expansions of existing issues reduces liquidity risk in the secondary market, a relevant factor for entities with high-quality liquid asset (HQLA) requirements under Basel III.
Who does it affect?
- Market Makers (Primary Dealers): Entities with exclusive access to second rounds at the marginal price. They must evaluate their bidding strategy in the first round to optimize total allocation.
- Institutional investors: Pension funds, insurance companies, investment funds and corporate treasuries that participate in Treasury auctions or acquire in the AIAF secondary market.
- Financial entities (banks and savings banks): Managers of sovereign fixed income portfolios and HQLA assets for compliance with liquidity ratios.
- Asset managers and family offices: With investment mandates in eurozone sovereign debt or strippable bonds.
- Corporate treasury departments: Companies that invest cash surpluses in Spanish public debt at medium and long term.
Practical example
A pension fund that participates in the auction on September 17, 2026 and is awarded the reference at 3.40% maturing October 2036 would obtain a gross yield of up to 4.14% annually on the award price. If the fund acquires 10 million euros in nominal value, it will receive annual coupons of 340,000 euros (3.40% on nominal) for approximately 10 years, plus the return of principal in October 2036. The difference between the 4.14% yield and the 3.40% coupon reflects the discount to par at which the issue would be awarded in the auction.
A Market Maker that does not cover its target position in the first round can participate in the exclusive second round at the marginal price set in the first round, without competition from other participants, which allows it to complete its reference portfolio without additional price impact.
What should entities do now?
- Confirm the operational calendar: The auction takes place on September 17, 2026 and issuance is on September 22, 2026. Ensure that your settlement and custody systems are prepared for that value date.
- Analyze the three references and select term: Evaluate which maturity (2032, 2034 or 2036) best fits your portfolio's target duration and regulatory liquidity requirements (HQLA, SCR under Solvency II).
- Prepare your bidding strategy: Define the price limit and nominal amount to request in the first round. If you are a Market Maker, consider using the second round at the marginal price to complete your position.
- Verify strippability: The securities are strippable bonds. If your strategy contemplates coupon stripping, confirm with your custodian the procedures in AIAF.
- Record automatic admission in AIAF: No additional procedures are required; admission is ex officio. Update your portfolio records with the corresponding ISIN code for each reference once the auction results are published.
Frequently asked questions
When is the State Bond auction in September 2026?
The auction takes place on September 17, 2026. The issuance of the awarded securities occurs on September 22, 2026. The resolution was published on September 15, 2026.
What yields do the State Bonds auctioned in September 2026 offer?
The gross yields range between 3.27% (0.70% reference maturing April 2032) and 4.14% (3.40% reference maturing October 2036), depending on the reference and the award price in the auction.
What are second rounds and who can access them?
Second rounds are an additional allocation phase reserved exclusively for Market Makers. They are awarded at the marginal price resulting from the first round, which allows these entities to complete their position without competition from other participants and without additional price impact.
What does it mean that the Bonds are "strippable bonds"?
The classification of strippable bond (or "strip") allows the separation of coupon flows from principal for independent trading in the secondary market. This offers greater flexibility in duration management and in building customized fixed income portfolios.
In what market do these State Bonds trade?
The securities are admitted ex officio in the AIAF Fixed Income Market, without the investor having to perform any additional admission procedures. Automatic admission guarantees immediate access to the secondary market from the issuance date.
Official source
Consult complete regulation in official source
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. For specific investment decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-19252
