The auction program is part of the 2022 annual financing plan (PAF) presented by the Treasury this Monday, which takes up the government’s intention to prioritize placement in the local market, as the main element of the financing policy, at the time of continuing with the development of the market for instruments linked to ESG criteria (environmental, social and governance).
The Treasury said that it will continue an active refinancing policy to limit liquidity pressures and broaden the investor base and to promote liquidity in all sovereign yield curves.
The auction program, effective as of January 4, 2022, will be carried out as follows:
Cetes: between 5,000 and 20,000 million pesos (mp) will be auctioned weekly. The first auctions in 2022 will present increases in all terms. To cope with the seasonality of the box during January. The amounts to be placed will be announced each week through the Bank of Mexico (Banxico).
Bondes F: The auctions for 1 (5,000 million pesos), 2 and 3 years (5,500 million pesos) will be held weekly. Those of 5 years (3,500 million pesos) will be auctioned biweekly.
Every six weeks, Bondes F of 5 and 7 years will be auctioned for an amount of 4,500 million pesos. Whenever the bids allow it, priority will be given to competitive bids in the longer term, said the Treasury.
M Bonds: 3 (6,000 million pesos) and 5 (7,000 million pesos) year bonds will be issued every 5 weeks and not every four, as has been done; 10-year bonds (12,000 million pesos), 20 (6,000 million pesos) and 30 years (5,250 million pesos) will be auctioned every 5 weeks and not every 6.
Udibonos: They are auctioned in the same periodicity: 3 (950 mdu), 10 (850 mdu), 20 (720 mdu) and 30 years (1,300 mdu).
As of December 20, 2021, the investment units (udis) were at 7.09 pesos, according to the Banxico website.