The Global Bond Index From Uruguay (ITBGL) increased 20 basis points in October and is at a 13-year high, according to data from the latest monthly bulletin of the Uruguayan Electronic Stock Exchange (Bevsa).
In this way, the ITBGL reached 579 basis points, largely thanks to the momentum of the decline in commodity prices. US Tresuries, that determined an upward shift in the yield curve UST, something that has an impact in general on dollar securities and in particular on the Uruguayan sovereign debt in that currency.
The index began the year with an initial decline to 458 basis points in January and then had ups and downs, until reaching a streak of increases in June that made it close September at 559 bp, caused mainly by the constant depreciation of the global dollar bonds.
For example, the prices of Securities in dollars registered negative variations in October compared to the previous month, except for the Global Bonus 2024 and 2027.
From Bevsa They pointed out that the greatest downward variation in the price occurred in the Global Bonus 2055, which went from 86.57% at the end of September to 83.93% at the end of October, which implied a monthly decrease of 3.05%. On the other hand, the only two titles that did not suffer a decrease in their prices were the Global Bond 2024 and 2027, which saw their prices rise 0.21% and 0.81% respectively.
It is worth remembering that the ITBGL It reached 1,294 basis points and began to fall after the 2008 crisis, reaching a relative minimum of 283 bp in 2012.
The MEF and the success in the second issuance of the green bond
He Ministry of Economy and Finance (MEF) last week successfully launched the second broadcast of the Bond Indexed to Climate Change Indicators (BIICC), maturing in 2034 for 700 million dollars and a coupon of 5.75%.
Well received by investors from all over the world, the BIICC 2034 yielded 5.6%, slightly below the value of the last business day of last week, of 5.7%. And the high demand received (3.9 times greater than what was awarded), allowed “compressing the spread,” indicated from the portfolio that manages Azucena Arbeleche.
About this situation, Arbeleche He considered that “it is another example of the confidence that the country generates in the financial markets” and valued that “since the beginning of this administration, work has been done to transmit certainties and responsible management of public money.”
Source: Ambito
