On Tuesday March 2, 2010 the Ministry of Finance (MoF) of the Dominican Republic, through the Public Debt Office, held its second Monthly Auction, as part of its Public Securities Auction Program initiated in 2009.  This year, the MoF expanded the program to include the Treasury Bills Program, issuing Bills for 3, 6 and 9 months. On this second announcement of the year, MoF offered RD$7,354.6 MM in Bonds and RD$100.0MM in Treasury Bills, for a total of RD$7,454.6 MM.  The amount offered for Bonds were of RD$404.6MM for the 3-year series and RD$3,300.0MM for the 5-year and RD$3,350.0 million for the 7-year series. The amount offered for T-Bills were of RD$50 millions for the 3 months and 6 months series, respectively.

This auction received offers for RD$13,604.8 MM from commercial banks, saving and loans associations and brokerage firms for their own accounts and on behalf of their clients.  Of this total, RD$6,607.4 MM (US$182.1 million equivalent at the exchange rate RD$/US$ 36.2794) was allocated corresponding only to Bonds.  The amount allocated for the 3, 5 and 7-year bonds totaled RD$ RD$404.6 (US$11.1 million equivalent at the exchange rate RD$/US$ 36.2794); RD$2,552.8 MM (US$70.4 million to the exchange rate of RD$/US$ 36.2794)  and RD$3,650.0 MM (US$100.6 million equivalent at the exchange rate RD$/US$ 36.2794), allocated at weighted average interest rates of 11.9402%, 13.9619% and 15.6081%, respectively.

The position received for RD$60 million (US$1.6 million equivalent at the exchange rate RD$/US$ 36.2794) and RD$65 millions (US$1.8 million equivalent at the exchange rate RD$/US$ 36.2794) for the 3 months and 6 months bills respectively at the weighted average rates of 7.95% and 7.12% respectively were not accepted. 

The third auction is scheduled for April 6th as part of the published 2010 calendar for the Public Securities Auction Program.

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