The financial entity accepted an amount higher than what was offered only in the first one; while in yesterday, the demand did not even exceed what was expected.
This week the Central Bank of Uruguay (BCU) issued three bills of monetary regulation (LRM) for just over 10,769 million pesosa 13.8% less than expected. In turn, it placed 1,261 million pesos in a Treasury Note in Indexed Units (UI).
Last monday may 8as provided for in the tentative placement schedule, the BCU awarded 4,466 million pesos in a title with a term of 35 days, expiration date next June 12 and a cut-off rate of 11.32%. The amount to be tendered was 4,200 million pesos and offers were submitted for 5,628 million pesos, 34% more.
However, two days later, the Wednesday 10, The market reaction to the second title, with a 91-day term and maturity on August 9 of this year, was different. Compared to the 3,300 million pesos offered, only 3,408 million pesos (3.3% more) were proposed and, finally, the entity ended up accepting just 2,458 million of pesosa 25.5% less than the initial bid amount. The cut rate was 11.36%.
Yesterday, Friday 12, Interest on the instrument in pesos with a term of 175 days and maturity on November 3 of this year dropped considerably. The demand did not even cover the expected 5,000 million pesos and was 4,644 million pesos, 7.12% less. The BCU also decided to accept only 3,844 million pesos (a 23.12% less), with a cut-off rate of 11.07%, so as not to validate a higher rate compared to the average of 10.87%.
1,261 million pesos were awarded in a Treasury Note in UI
Among these issues of titles in pesos, the BCU also placed, this week, 1,261 million pesos in a Treasury Note in UI –Series 31– with maturity of almost six years, in January 2029.
The amount to bid stipulated by the Public Debt Management Unit (UGD) It was 200 million UI – approximately 1,157 million pesos or 29.9 million dollars, at today’s value.
However, as the State has within its powers to end up awarding up to twice the amount auctioned, and there were proposals for 292,000 UI –close to 43 million dollars–, it ended up placing a little more than what was offered: 218.100 million IU –1,261 million dollars or 32.6 million dollars–, a 9% more than expected.
With these bidding results, whose cut rate it was of 3.09%the currency of this NT amounted to 1,671 million UI –almost 9,668 million pesos–.
Among the conditions of the Note, the UGD established a 3.25% annual coupon. In turn, the interest payment be biannualevery July 18 and January 18, until January 18, 2029, expiration date, where the amortizationin one go.