Treasury adjusts securities auction for second quarter of 2020

The Ministry of Finance reiterated its commitment to use public debt in a responsible way to meet its goal of fiscal consolidation

Televisa News SOURCE: newscasts televisa FROM: CDMX, Mexico

Mexican peso. (Getty Images, file)

Given the volatility in the markets, the Ministry of Finance announced adjustments to the placement of government securities among the investing public such as Cetes and various bonds in the second quarter of this year compared to the first quarter that are part of its financing program.

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This adjustment allows the government to soften the maturity profile, improve its debt portfolio, provide liquidity to the market or to strengthen new benchmark issues.

In a statement, Hacienda specified that, from April to June, it will increase the range of the amounts to all Cetes terms at 5 billion pesos. The adjustment has the objective of attending to changes derived from the liquidity conditions of the market.

In the case of M Bonds , Hacienda decided to decrease the auctions depending on the instrument ranging from 1500 to 5 thousand 300 millions of pesos.

Regarding the auction of Bondes D , that is, the Development Bonds , the average amounts to be auctioned for the second quarter increase to 8 billion pesos.

Decrease the average amounts to auction weekly of Udibonos in all references with respect to the previous quarter.

The Ministry of Finance stated that it will evaluate the advisability of carrying out syndicated auctions and will analyze the possibility to introduce new reference bonds at a fixed rate as well as at a real rate.

The agency reiterated its commitment to use public debt in a responsible manner to meet its goal of fiscal consolidation and preserve the stability of the Mexican economy in an adverse environment.

With information from Guadalupe Flores.