The Uruguayan global bonds in all their versions, dollars, pesos and indexed units (UI), closed last week lower, a common reaction of the market to the possibilities of an increase in long rates by the Federal Reserve of USA.
Bonds in dollars had falls of up to 2.18%, with the greatest declines in longer-term papers, the AFAP Republic monitor showed. This is the third consecutive week of decline. Thus, the 2055 bond fell 2.18%, while the 2045 and 2050 bonds fell 2.15 and 1.97% respectively.
He bond indexed to climate change indicators (BIIC 2034) It also recorded one of the largest declines with a negative variation of 1.51%.
The behavior of the rest of the dollar bonds was as follows: 2024 (-0.10%), 2025 (-0.12%), 2027 (-0.15%), 2031 (-0.72%), 2033 (-0.96%), 2036 (-0.95%).
Meanwhile, global bonds in pesos fell between 0.05% and 0.43% and papers in UI showed negative variations that ranged from 0.24% for the 2030 title to 1.38% for the 2040 title. .
The sovereign spread that measures its own country risk with its Uruguay Bond Index (UBI) It rose 2 basis points to reach 73 bps.
Meanwhile, the country risk calculated by República AFAP for these securities (IBI), which measures the average spread between the yield of bonds issued in UI by the Uruguayan State and the yield of the TIPS (Treasury Inflation Protected Securities) of the United States government, showed no changes and stood at 64 basis points.
In the global market, US Treasury yields retreated from hitting 16-year highs as investors shifted their focus from the hawkish stance of the Federal Reserve to key economic data waiting in the wings.
Investors continued to assimilate the decision of the Federal Reserve of maintaining its key interest rate and, particularly the update of its quarterly economic projections, to suggest that the restrictive monetary policy will remain in place longer than previously anticipated.
Comments from the governor of the Federal Reserve, Michelle Bowmanbacked the hardliners, suggesting that the Fed’s target rate should be raised further and kept at “a restrictive level for some time to return the inflation to our 2% target in a timely manner.
Source: Ambito
