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Finance

Uruguay Treasury Note Sale Sees Record Low Yield as Demand Surges

Uruguay's government sold a new batch of peso-denominated Treasury notes, and investor demand was so strong that it drove the interest rate to a record low. The notes, part of the Serie 13 issue, mature in June 2030. The government offered 2.25 billion Uruguayan pesos (about $56-57 million), but investors requested 9.67 billion pesos (around $242 million)—more than four times the amount on offer. In response, the government issued 4.41 billion pesos (roughly $110 million), nearly double the original offer. The high demand allowed Uruguay to borrow at a record-low annual yield, meaning the country will pay less interest on this debt. Treasury notes are a common way for governments to raise money by borrowing from investors. In return, investors receive regular interest payments plus the face value at maturity. The strong demand suggests investors have confidence in Uruguay's economy and see the notes as a safe investment. The record low yield also reflects global trends, where many central banks have cut interest rates, making higher-yielding investments like Uruguayan peso notes attractive. The sale was part of Uruguay's regular debt management operations.

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