He Central Bank of Uruguay (BCU) and the Ministry of Economy and Finance (MEF) will place domestic public debt titles this week for a total of 11,600 pesos, among which stands out the reopening of a Series 10 Treasury Note.
This Tuesday, at 2:00 p.m., the first title in pesos for 3,300 million pesos –84.92 million dollars, at today’s value–, with integration that same day and with a term of 28 days. Of that total, 660 million pesos will be non-competitive placements.
On Wednesday there will be another adjudication, also at 2:00 p.m.: a title will be tendered for 3,300 million pesos, equivalent to about 84.92 million dollars, with integration that same day and with a term of 77 days. Of this total, 660 million pesos are considered non-competitive.
Finally, on Friday a title will be auctioned for 4,200 million pesos –108.09 million dollars– with integration that same day and with a maturity period of 189 days. Of this total, 840 million pesos will be considered non-competitive placements.
The Treasury Note in Pesos Series 10 that will be tendered tomorrow by 800 million pesos for a term of 5.7 years. Given the flexibility with which the State can extend the award, an even higher figure could be expected after the process.
As usual in NT reopenings, the Debt Management Unit (UGD) will structure the tender “as a single price auction, which means that all accepted offers will be awarded at the same price.”
The market with a strong appetite for BCU and MEF issues
Last week the Central Bank issued three monetary regulation bills (LRM) for just over 10,880 million pesos, 20% more than expected (9,100 million pesos). But the most outstanding were the offers of the financial agents, which amounted to 16,000 million pesos, 175% more than the base value.
Fifteen days ago, the amounts accepted had been 13.8% less than programmed by the BCU, so the recent numbers published by the Electronic Stock Exchange of Uruguay SA (Bevsa) show a jump in investor interest in recent days.
Another sign of interest in Uruguayan titles was the bidding for a Treasury Note in Pension Units (UP) Series 3 maturing in 21 years last week, where the Ministry of Economy and Finance awarded 2,131 million pesos —83 million dollars—, with the aim of continuing funding with debt instruments in pesos.
The amount to bid stipulated by UGD was 1,100 million UP. However, the demand from investors exceeded double what was offered: 2,565 million UP -equivalent to 2,336 million pesos or 91 million dollars, according to the Central Bank of Uruguay.
Finally, the government ended up awarding 2,200 million UP —2,131 million pesos or 83 million dollars—, while the State has within its powers to end up awarding up to twice the amount auctioned. On this occasion, the characteristic that has made it possible to exceed the expectations of previous tenders, operated as a limitation for the coverage of the entire demand.
Source: Ambito
