Internal Debt Repayment Calendar for June 2024: A Glimpse into the State's Intentions
The internal debt repayment calendar for June 2024 is marked by only three maturities, but they are significant ones. As we present them, we pose a question about the State's intention to resort to direct financing from the Central Bank, and the answer is already clear.
First Maturity: BTCT 26 Weeks - 14/06/2024
For the first maturity, the Treasury has launched a tender for BTCT 26 weeks, maturing on 10/12/2024, for an amount of 120 billion dinars. This is to cover the repayment of BTCT 26 weeks, maturing on 17/06/2024, for an amount of 1,000 billion dinars. An auction is scheduled for today, with a settlement date of Tuesday, June 18.
Market Financing: A Logical Choice
The Treasury is therefore turning to the market to finance its needs. This is a logical choice, given that there is still lending capacity available. The budget exercise is still long, and it is better to keep a cash reserve for the difficult times at the end of the year.
BTCT 52 Weeks - 24/06/2024: Another Sign of High Interest Rates
For the BTCT 52 weeks, maturing on 24/06/2024, for an amount of 960 billion dinars, we believe that the market will again be tapped. This is another sign that interest rates will remain high. The Central Bank only needs to steer the Money Market Rate (TMM) around its benchmark rate, which it has successfully done, waiting for a window of opportunity to lower it.