He Uruguay Risk Index (Irubevsa) which formulates the Electronic Stock Exchange of Uruguay (Bevsa) and measures the spread of debt yields Uruguay in dollars with respect to the debt of USA (US Treasuries), fell back to the 90 basis points (bp) zone during the past week, confirming a downward trend after the peak reached at the beginning of the month.
On Friday, August 2, the Irubevsa had reached a monthly record of 114 bp., but opened last week with a fall of 1 bp., to finally close at 95 bp. during last Friday (9), returning to the 90 bp zone.
The weekly decline was 19 bp after the close on Friday, although the index experienced a decline of up to 22 bp when it closed on Thursday, reaching 0.92%.
For its part, the exchange rate experienced a similar behavior after falling 0.62% on a weekly basis, to 40.207 pesos per dollar.
Likewise, the yield on the 10-year sovereign bond (dollars) remained at the level of 4.9%, while the Uruguay Bond Index (UBI) of the Republic AFAP was located at the close of last week at 85 bp.
Irubevsa rose 22 basis points between June and July
The Irubevsa rose from 73 to 95 bp. (or 0.95% annually) between June and July, marking the highest monthly close since the 97 bp. with which January ended.
According to the latest monthly bulletin from Bevsa for the month of July, the increase in Irubevsa is explained by the fact that, although both curves decreased, that of the UST did so to a greater extent on all nodes. As a result, all spreads increased, directly impacting an escalation of the index.
In turn, a value of 95 bp. represents a clear increase compared to the previous month (73 bp.), and positions the index above the value of a year ago, when the index reached 82 bp. at the close of July 2023.
Source: Ambito
