The global dollar bonds Uruguayans had widespread losses last week amid growing risk aversion due to the uncertainty caused by the negotiations for the US debt ceiling and the projection of a new rise in interest rates by the Federal Reserve (Fed).
The biggest falls were in longer-term bonds, showed the weekly monitor of AFAP Republic. The papers to 2036, 2045, 2050 and 2055 they fell 1%, 1.10%, 1.01% and 1.29% respectively.
Short- and medium-term dollar bond positions also declined. The bonus 2024 fell 0.30%, the 2025 0.24%; he 2027 0.30% did; while the bonds to 2031 and 2033 they registered decreases of 0.65% and 0.71%, respectively.
He bond indexed to climate indicators 2034 (BIIC) it depreciated 0.73%.
The weekly falls accompanied the climate of uncertainty that reigned in the market due to what seemed to be an imminent default in the United States, a situation that began to reverse over the weekend with urgent negotiations between the government of Joe Biden and the Republican Party to reach an agreement for the debt ceiling.
However, almost in parallel, new projections that the Federal Reserve will make a new decision to raise its reference interest rate, postponing the start of the expected pause, also had an impact on US bonds with the correlative effect on emerging countries.
Hence, despite the drop in global bonds in dollars, the country risk Uruguay Bond Index (UBI) had a slight improvement (-1) to settle at 83 basis points.
All the bonuses in UI They were all upward: the one that expires in 2027 rose 0.07%; the 2028 bond rose 0.28%, while in 2030 it rose 0.10%; and in 2037 0.29%.
Meanwhile, the country risk calculated by República AFAP for these titles (IBI), which measures the average spread between the yield of the bonds issued in UI by the Uruguayan State and the yield of the TIPS (Treasury Inflation Protected Securities) of the United States government, fell to a greater extent –17 bps- to 111 bps.
Source: Ambito
