Failed Projection: Treasury Bills (TES) Rates Surpassed 14% That the Director of Public Credit Believed "Unlikely"
The Colombian public debt market ended up contradicting the Government's own forecasts. The rates of Treasury Bills (TES) surpassed the threshold of 14%, contrary to what was projected months ago by the Directorate General of Public Credit.
TL;DR
- Colombian TES rates exceeded 14%, contrary to earlier government forecasts.
- The latest TES auction saw a 14.030% cut-off rate for four-year titles, despite significant investor interest.
- High rates reflect macroeconomic uncertainty and external factors, indicating investors demand higher returns.
- Increased TES rates influence other financial products, particularly mortgage loans, leading to higher borrowing costs for households.
- The situation could make lending to the government more profitable than to households, potentially limiting credit for families.
- The country is acquiring debt under more expensive conditions, which may result in costlier loans and reduced future investment capacity.