This Tuesday, the Debt Management Unit of the MEF reopened the Treasury note in nominal pesos maturing in 2025 (3.5 years term) for $700 million. The demand was almost six times higher than that amount: $3,926 million (about US$90 million). In view of the strong appetite of investors, the MEF made use of the option and accepted up to double the amount offered: $1.4 billion (about US$32 million). The cut-off interest rate for that tender was 8.46% per year0.4 points above the 8.10% that it paid in the auction of that same note last December.
This was the first issue in nominal pesos after the Central Bank (BCU) will increase in January the reference interest rate by 75 basic points, to 6.75%seeking to anchor inflationary expectations. Inflation closed in the 12 months to January at 8.15%, above the official target range that will take effect in September (3% to 6%).
