A Second Auction of Treasury Bills 2026: Panama Awards More than $240 Million
The Republic of Panama awarded USD 240.9 million in the second auction of Treasury Bills corresponding to the 2026 term, with a term of 12 months, made up of USD 240.2 million in first round offers, USD 750 thousand in second round. In total, 46 competitive bids were received in Panama for USD 181.7 million and 22 non-competitive bids for USD 185.2 million.
Auction in Panama
This result reflects investors’ strong appetite for short-term sovereign instruments and confidence in the country’s macroeconomic fundamentals and financial stability. The cut-off price was 95.76%, higher than that recorded in the February 2026 auction, while the weighted average yield reached 4.347%, representing a reduction of 18 basis points compared to the previous auction. This performance confirms the downward trend in interest rates in the local public debt market. The auction had an initial indicative amount of USD 50 million and received bids for USD 366.9 million, equivalent to more than seven times the announced amount, demonstrating the depth, liquidity and dynamism of the local capital market.
In total, 46 competitive bids were received for USD 181.7 million and 22 non-competitive bids for USD 185.2 million, highlighting the active participation of institutional investors and the Market Makers of the Treasury Bill Program. The placement took place against a backdrop of mixed international financial conditions. Compared to the February 2026 auction, the 12-month SOFR rate increased by 4 basis points and the benchmark UST Bill rose by 7 basis points, while the EMBIG country risk indicator decreased by 8 basis points, reflecting an improvement in the perceived risk of the Panamanian economy.
Market Rates
This evolution strengthens the strategy of the Ministry of Economy and Finance (MEF) aimed at progressively reducing the gap between international market rates and the local market, promoting greater development and depth of the domestic public debt market. The successful placement of this second auction of the year, with an oversubscription of more than seven times and more favorable financial conditions than in the previous month, demonstrates the positive evolution of the Panamanian capital market.
The Ministry of Economy and Finance (MEF) appreciates the active participation of the Market Makers and acknowledges the continued support of local and institutional investors. This transaction reaffirms the country’s commitment to transparent, efficient, and responsible debt management, optimizing financial costs while maintaining the fiscal stability that drives the nation’s sustainable economic development.
