Yields on Colombia’s peso-denominated benchmark Treasury TES bonds fell across the board on Wednesday for the second consecutive time after the government said it will soon slash the amount on offer.
The yield on the peso-denominated TES due July 2024 CO240724F=SENC fell to 7.68% from 7.747% at the previous auction, the government and traders said.
Yields on TES debt maturing on October 2018 CO241018F=SENC decreased to 7.208% from 7.260% at the last auction, the Finance Ministry said.
The government sold TES notes due October 2015 CO281015F=SENC at 6.622%, less than the 6.632% yield previously.
The bid-to-cover ratio was 3.39 in a $199 million sale that received about $673 million in offers, it said.
Colombia has said it would reduce the amount of its peso-denominated TES auctions by nearly a third after having completed more than 70% of its scheduled 2011 issuance.
Colombia’s 2011 budget foresees a total of about $15.8 billion in TES issuance, and the ministry said the year’s target remained unchanged. In the first half of the year, auctions of TES averaged about $283 million per auction.
The 2011 financing plan calls for about $10.2 billion of TES to be sold at auctions. The bonds are Colombia’s second-largest source of public financing, following taxes.