The Ministry of Economy and Finance offered some $1,789 million and ended up awarding a much higher figure.
The government, through Ministry of Economy and Finance (MEF), reopened the Treasury Note Series 3 in Pension Units (UP), with a demand of almost double what was offered and awarded more than 3,101 million pesos (about 82 million dollars).
The offer of FEM, that seeks to continue funding with debt instruments in pesos, was 1.2 million UP, equivalent to about 1,789 million pesos (47 million dollars), while the demand almost doubled that figure, since it was for 2,380 million UP, close to 3,548 million pesos (93 million dollars), awarding the total of 2,080 UP, equivalent to more than 3,101 million pesos.
The offer of the NT Series 3 closed with a cut price of 100.66 and a Internal Rate of Return (IRR) of 2.1490%, according to data from the Electronic Stock Exchange of Uruguay (Bevsa). Regarding the conditions, they include a term of just under 17 years, since they expire on May 13, 2040.
In turn, it is expected that this Wednesday a title of public debt domestic. It will be for a value of 5,800 million pesos (about 153.24 million dollars) and with a term of 351 days. Of that total amount, 1,160 million pesos are considered non-competitive.
A good sign for the MEF, despite the drop in nominal rates in pesos
The good reception for the NT Series 3 It occurs at times when there is a drop in the cut-off rate for securities issued in national currency, in line with the 75 basis point decrease in the reference interest rates established by the Monetary Policy Committee (Copom) of the Central Bank of Uruguay (BCU), which remained at 10%.
An example of the situation with securities is the global bond in pesos 2033, which was launched on July 11 by the MEF and reduced its annual yield, from 9.75% to 9.05%. This decline is in line with the drop in rates in nominal pesos in recent weeks, a phenomenon boosted by the latest data from inflation, that placed the CPI at 4.79%, near the center of the government’s target range and the lowest level since November 2005.
Source: Ambito
