Mexico City.- The Ministry of Finance and Public Credit (SHCP) seeks to place more than 741 billion pesos in auctions of government securities during the last quarter of 2024, according to its program that is part of the annual financing plan.
The Government places government securities through the Bank of Mexico (Banxico), which is its exclusive financial agent, to obtain financing.
Securities auction is the technique predominantly used by most governments (whether in developed or emerging markets) to sell debt to the non-state sector. During the last 13 weeks of the year, the Treasury will place 741,671 million pesos in government securities such as Treasury Certificates (Cetes), Bondes F, Bonos M and Udibonos.
In the fourth quarter of the year, the 28, 91 and 182-day Cetes auctions will be held every week, while the one- and two-year nodes will be auctioned biweekly.
The weekly range to be auctioned by Cetes for this quarter remains between 5 billion and 25 billion pesos, including all terms. The amounts of the Bondes F auctions will be reduced in all terms, except in the three-year node, which will remain at the same level as the previous quarter. “The issuance of terms of one, two, three and five years will continue on a biweekly basis. The terms of seven and 10 years will be auctioned on a monthly basis. The communicating vessels scheme will not be used,” the Treasury said in a statement. For the M Bonds, the amount to be auctioned will be increased in terms of three to 10 years, while in the 20 and 30 year nodes it will be maintained. In the case of Udibonos, the amount to be auctioned in the three-year nodes will be reduced, while the amount for the 10 and 20-year nodes will increase. The 30-year node will remain unchanged. Regarding debt management, the Treasury stated that it will remain attentive to the behavior of the financial markets and will use the tools at its disposal to ensure their proper functioning. He said that he will give priority to contracting fixed-rate and long-term debt and will carry out comprehensive risk management of the public debt portfolio.
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