March closed with a mixed behavior on the yield curve of the Uruguayan sovereign titles in pesos (ITLUP)with falls in the first nodes and rises from the node that contemplates three-year bonds.
Investments in sovereign debt in the medium and long term they were the ones that had the best returns during March, according to the corresponding monthly bulletin of the Electronic Stock Exchange of Uruguay (Bevsa). In this way, the node that registered the highest increase was for eight years, standing at 10.59% per year; this represented an increase of 41.1 basis points. On the other hand, the one-month yield was the one that fell the most, going from 11.53% at the end of February to 11.27% at the end of March, with a difference of 25.6 basis points between the two months.
Regarding the prices of Global Bonds in pesos, in the monthly comparison with respect to the end of February, the 2028 Global Bond fell 1.01% and the 2031 Global Bond fell 1.99%. Meanwhile, the Treasury Note 9 in Pesos rose 0.16%; although the Treasury Note 10 in Pesos had a decrease of 0.94%.
On the other hand, the cutting rates of the Letters of Monetary Regulation presented downward variations for all terms, except for the term less than or equal to 30 days, whose yield increased from 11.62% to 11.64% in the period considered. Likewise, in the series of the twelve months ended March 2023, a upward trend for all time frames which from November 2022 began to slow down.
At the same time, if one observes the performance evolution per node, the corresponding to five years reversed in March a downward trend that it maintained during the last months of 2022 and the first months of 2023, and closed at 10.61% annual. On the other hand, the behavior of the one-month node rates, which had been going through an upward trend since August 2021, did not meet expectations and closed below the price month, at 11.53% per year.
In addition, all securities in pesos presented a negative year-on-year variation of 5.45% for the 2028 Global Bond, 7.50% for the 2031 Global Bond and 2.96% for the Series 9 Treasury Note.
Debt yield in dollars and in Indexed Units
The performance index of the Uruguay Global Bonds in dollars (ITBGL) closed the month of March at 480 basis points, 15 basis points below the close of the previous month, at 495 basis points.
If one takes into account, in particular, the debt indices in dollars and in Indexed Units (IU)the behavior is uneven: while the first closed with a downward shift, the second had an increase compared to February.
In the case of the yield curve of the Uruguay debt in dollars (CUD), the decrease occurred in all the nodes except the three-month node, which rose 5.7 basis points. On the other hand, the greatest negative variation was in the 2-year bond, which decreased by 57.2 basis points. The Global Bonds in dollars registered monthly increases in prices for all cases, with the exception of the Global Bond 2024 and the Global Bond 2034.
On the other hand, the yield curve of the debt issued in Indexed Units (CUI) Instead, at the end of March it presented an ascending shift for the entire intertemporal structure. The greatest rise was registered in the 30-year node, which went from 3.221% at the end of February to 3.621% annually at the end of March, which implied an increase of 40 basis points. For its part, the smallest increase occurred in the three-year node, which stood at 2.738%, rising just 1.4 basis points compared to February.
Source: Ambito
