Colombia on Wednesday auctioned TES government bonds due in June 2016 at a yield of 6.84 percent versus 6.63 percent at the last auction, the government said.
Colombia also sold July 2024 bonds at a yield of 7.64 percent, up from 7.35 percent at the previous sale.
Colombia’s TES bond market is enjoying strong demand thanks to growing expectations the Andean country will soon regain an investment grade rating on its sovereign bonds after losing it during a 1990s fiscal crisis.
The finance ministry said that it offered 300 billion pesos ($166.1 million) and received 876 billion pesos in bids.
Colombia’s government has said it would increase its auctions of local TES debt next year by about $1.1 billion over its original 2011 target to accommodate a planned increase in government spending.
The Latin American nation originally planned $8.85 billion in TES auctions for next year.
Colombia has predicted a 2011 central government fiscal deficit of 3.9 percent of gross domestic product, and a consolidated fiscal deficit of 3 percent for next year. (Javier Mozzo / Reuters)
