The MoF continues to consulate with primary dealers ahead of auctions. Yesterday, they published conditions for next Tuesday. They are looking to offer four bonds: one six-month zero-coupon bond, and three bonds with semi-annual coupon payments with 12-month, two-year, and three-year maturities.
All similar maturities have been sold within the last three weeks. Six-month bonds were sold last week at 13.85%, 12-month bonds two weeks ago at 14.40%, two-year bonds three weeks ago at 14.46%, and three-year bonds were sold this Tuesday at 14.54%.
Investment implications: The range of interest rates is tight and the most attractive are the longest bonds, which give a fixed rate for a longer term. But depending on the investor, bonds with shorter maturities could also see demand. The MoF will decide on maturities next Monday after receiving indications of demand from dealers. We anticipate larger demand than this week, and at the same rates without changes.
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