The Uruguayan global bonds in dollars, indexed units (UI) and long-term pesos registered significant falls last week, the AFAP Republic monitor showed.
The biggest declines were in dollar-denominated sovereign bonds. The titles to 2045, 2050 and 2055 fell 2.55%, 2.99% and 3.62%, respectively. Bon 2036 fell 2%.
It was followed by the global bond in pesos for 2033, which registered a decrease of 1.12%. Regarding titles in indexed units, the most significant decrease corresponded to 2040 paper, with a decrease of 0.90%.
The sovereign spread that measures country risk with its Uruguay Bond Index (UBI) rose 4 basis points to stand at 77 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 government of USAfell 15 basis points and stood at 49 bps.
Last week the performance of the United States Treasury bondswhich was supporting the dollar, also fell from multi-year highs, a factor that, together with a 27% increase in the price of the Petroleum This quarter, it has helped the greenback turn positive for the year against almost all major currencies.
This Monday, however, Treasury bond yields rose. The US 10-year bond yield rose another 6 basis points to 4.6289%, close to a 17-year high of 4.688% hit last week.
This occurs after the United States Congress approved late on Saturday a provisional financing law with overwhelming Democratic support in an attempt to avoid the fourth partial shutdown of the federal government in a decade.
Source: Ambito
