He Central Bank of Uruguay (BCU) it placed less than half of the 90-day bills in pesos offered yesterday to the market, a new demonstration of the little interest that the papers are generating in the short and medium term.
Bills in pesos at 90 days were yielding 11.38%, with an offer of 3,960 million pesos and a demand of 1,774 million, the entirety of which was accepted.
The BCU issued bills in national currency, in Indexed Units (IU) and certificates of deposit for 1,774 million pesos and there were no maturities for these papers, so pesos were removed from the circuit for 1,774 million pesos, he highlighted the Electronic Stock Exchange SA (Bevsa).
The last reopening of NT in pesos was not attractive either
He Ministry of Economy and Finance (MEF) should have declared the tender void Treasury Note (NT) Series 10last Tuesday, for 800 million pesos (20.71 million dollars) because the demand was only 191 million, not reaching the amount offered.
It was the second time in a row that the reopening of this NT was declared void. In the previous tender, on March 28, the MEF did not achieve special interest from the market for the title either.
“Being a fixed peso note, which is not adjusted for inflation, makes it less attractive and less desired by investors since a real return is not guaranteed as the notes in Indexed Units offer you,” he told Ámbito.com Francisco Echegoyenhead of the Bureau of Gastón Bengochea Stockbroker.
The market also shows less appetite for shorter-term notes, while multi-year option reopenings often have a demand that often doubles the amount offered.