02:29Spain: 'The banks hardly give you anything, this is about 3 percent’- Locals queue for Treasury Bills to fight inflation
A long line had already formed in front of the Bank of Spain headquarters in Madrid starting in early morning hours as locals have resorted to buying Treasury Bills to combat inflation.
Footage shows locals in front of the bank's building forming a line on the sidewalk on 48 Calle de Alcala.
The European Central Bank's rate hikes have put an end to the negative yields on Treasury bills, and investors are rushing to buy them.
"It's a product that gives a good return nowadays, the banks give you hardly anything and this is about 3%, so it's a good thing," said a local standing in the queue.
To buy a Treasury bill in person, all one has to do is go to one of the Bank of Spain's branches with his ID card, bank details and the money one wishes to invest, with a minimum purchase of 1,000 euros.
Treasury bills, with a yield of 3% at 12 months, are causing a furore among savers and the most conservative investors. In the face of low returns on bank deposits, short-term fixed-income government debt securities have emerged as one of the most sought-after vehicles to mitigate the impact of inflation, which is causing a significant loss of purchasing power.
02:29A long line had already formed in front of the Bank of Spain headquarters in Madrid starting in early morning hours as locals have resorted to buying Treasury Bills to combat inflation.
Footage shows locals in front of the bank's building forming a line on the sidewalk on 48 Calle de Alcala.
The European Central Bank's rate hikes have put an end to the negative yields on Treasury bills, and investors are rushing to buy them.
"It's a product that gives a good return nowadays, the banks give you hardly anything and this is about 3%, so it's a good thing," said a local standing in the queue.
To buy a Treasury bill in person, all one has to do is go to one of the Bank of Spain's branches with his ID card, bank details and the money one wishes to invest, with a minimum purchase of 1,000 euros.
Treasury bills, with a yield of 3% at 12 months, are causing a furore among savers and the most conservative investors. In the face of low returns on bank deposits, short-term fixed-income government debt securities have emerged as one of the most sought-after vehicles to mitigate the impact of inflation, which is causing a significant loss of purchasing power.