The most important aspects of the government’s securities issuance strategy for the first quarter of 2015 are the following
- The amounts to be issued for Fixed-Rate Bonds (3, 5, 10, 20 and 30 years) and Udibonos (3, 10 and 30 years) have been reduced.
- During the first quarter of 2015, the Federal Government will announce a minimum and a maximum amount of 28-day and 91-day Cetes to be issued weekly. In this way, the weekly issuance amount of these instruments will be between these specific amounts.
- During the first quarter of 2015, the weekly minimum and maximum issuance amount will remain unchanged. The 28-day Cetes weekly minimum and maximum issuance amount will be 4,000 and 9,000 million pesos, respectively. The 91-day Cetes weekly minimum and maximum issuance amount will be 7,000 and 12,000 million pesos. The specific amount to be issued each week will be specified in the corresponding auction announcement of the Central Bank.
- During the first quarter of 2015, the Udibono due Jun-19 (S190613) will replace the (S171214) as the 3-year new inflation-linked bond benchmark, the Mbono due Dec-18 (M181213) will replace the (M180614) as the new 3-year benchmark. This strategy was designed to increase liquidity in previously issued bonds.
- As previously announced, syndicated auctions are now conducted using a more flexible format. These operations will no longer be announced as part of the quarterly calendars nor as substitutes of primary auctions. These auctions could be launched in any quarter of the year and the amount to be auctioned may be additional to the quarterly issuance scheduled for that instrument. The announcement of the syndicated auction will be held in the week prior to its issuance. This format allows the Federal Government to choose the right timing for each transaction based on investors’ appetite and market conditions. Once the new references are issued, the reopening policy will continue.
- The syndicated auctions of stripped 30-year Udibonos will continue to take place every 12 weeks. The amount to be auctioned will be announced the week prior to the transaction.
- The auctions of Cetes, Nominal Fixed-Rate Bonds, Udibonos, Bondes D and the syndicated auctions of stripped Udibonos to be executed in the first quarter will have the following characteristics
The Ministry of Finance may execute exchange and repurchase transactions during the first quarter of 2015. Multiple exchange and repurchase transactions may be carried out as long as the market conditions are conducive to their successful execution.
In case one of these transactions is executed, the Ministry will specify, through the Central Bank, the instruments, terms and size of each transaction.