Panama's Treasury Auction Sees Massive Oversubscription

Panama held its first auction of Treasury bills for 2026. The auction had an initial amount of 50 million dollars, but bids reached 364.2 million dollars, more than seven times the 'announced amount,' confirming the 'depth and dynamism of the local market,' according to the Ministry of Economy. Finally, Panama awarded 204.7 million dollars from the final amount, composed of 162.65 million dollars from competitive and non-competitive bids, 37.9 million dollars in the payment of preferential interest, and a second round of 4.15 million dollars. Panama's Ministry of Economy reported this Wednesday that approximately 204.7 million dollars were awarded in the first auction of 12-month Treasury bills for 2026, an operation that 'reflects the solid appetite of investors.' Likewise, the Ministry of Economy stated that 'this operation contributes to a reduction of the public debt balance by 105.7 million dollars.' Panama's Gross Domestic Product (GDP) grew by 2.7% in 2024, driven by trade and domestic consumption, although marked by the drag from the abrupt closure of a large copper mine that has slowed its expansion pace. The cut-off price was set at 95.52%, higher than in the previous auction, while the average weighted yield was 4.53%, 33 basis points below that recorded in December 2025. The Panamanian government maintains an expectation of 4% economic growth for 2025. GDP expanded by 4.4% in the first half of last year 2025, compared to the same period in 2024, driven by the interoceanic Canal, according to statistics from Panama's General Comptroller's Office. At this level, 44.6% of the competitive bids received were awarded, according to the communiqué. The Ministry of Economy highlighted that the results 'reinforce the strategy to strengthen the local capital market, supported by the favorable evolution of the Panamanian economy, the increase in the credibility of fiscal policy, and the firm commitment to discipline in public debt management.'