Sovereign Bond Emissions Shift to Short-Term Treasury Bonds
In recent times, the majority of sovereign bond emissions have taken the form of short-term Treasury bonds (BTCT). The assimilable Treasury bonds (BTA), which have a longer lifespan, are no longer attracting subscribers in a context of high interest rates, but with signs of a future downward revision.
The last BTA emission only managed to collect 10.6 billion dinars, and only the shortest maturity (January 2029) was able to mobilize resources. In other words, financial institutions have shifted their long-term investments in sovereign bonds to bonds issued as part of the various tranches of the national loan. We will be following the behavior of subscribers during the scheduled BTA emission on October 14, 2024, with the announced objective of collecting 400 billion dinars.
It is crucial for the Treasury to mobilize resources in the form of BTA, as this significantly alleviates pressures. BTCT have a maximum lifespan of 52 weeks, and what is collected today will be repaid in 2025. Already, all signs point to an internal debt service of at least 15 billion dinars. Such a sum hinders more effective public action, and it's no wonder why there is a lack of means in our schools and hospitals.
