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Performance of Debt Securities in the Capital Markets and Relevant

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Performance of Debt Securities in the Capital Markets and Relevant (In Million of US$) Debt service - February 2018 Adjustments Balance Balance Disbursements and Exchange Balance Creditor Amortization Interest and Fees Total and Discount 02/28/2017 01/31/2018 Capitalization Variation 02/28/2018 Price Total Debt 21,842.6 23,384.1 34.2 101.2 35.5 136.7 8.3 0.8 23,326.2 External Public Debt 17,144.4 18,371.7 0.0 39.1 19.1 58.2 8.3 0.0 18,340.9 Internal Public Debt 4,698.2 5,012.4 34.2 62.1 16.4 78.5 0.0 0.8 4,985.3 General Situation Debt Composition by Currency and Interest Rates — February 2018 (US$MM) The balance of the total public debt decreased by US$57.9 million (0.25%) when compared to the balance registered at the end of January 2018. US$ - Floating Rate 3,930.9 During the month of February, US$136.7 million were allocated to the debt 16.85% service, of which 74% correspond to principal payments of loans contracted with US$ - Fixed Rate Other Currencies - 18,850.8 Fixed Rate Multilateral Organizations for US$39.1 million, highlighting: (i) payments to the 80.81% 538.1 Inter-American Bank of Development (IDB) for US$23.6 million; (ii) payments for 2.31% loans contracted with the International Bank for Reconstruction and Other Currencies - Floating Rate Development (IBRD) for US$13.7 million. Within the internal debt service the 6.4 payment for US$60.0 million corresponding to the maturity of Treasury Bills 0.03% stands out. Public debt, balance by creditor (US$MM) On the other hand, in the month of February, the Ministry of Economy and Private Financing 0.9 Providers Finance executed the second auction of the year of treasury bills within the 5.4 Official Banking 106.8 framework of the Market Makers Program, which resulted in the allocation of the Bilaterals 199.4 US$35.0 million with a 12 month maturity and a weighted average yield of Treasury Bills 298.0 2.33%. Commercial Banking 593.7 Treasury Notes 2,061.0 In the month of February, Prime Minister Shinzo Abe decided to nominate Treasury Bonds 2,514.5 Governor Haruhiko Kuroda to lead the Bank of Japan (BoJ) for a second Multilaterals 5,050.5 consecutive term, indicating his preference for continuing to maintain a Global Bonds 12,497.3 monetary policy of negative interest rates together with a plan of gradual purchases of Government Bonds. USD/YEN Evolution — February 2018 113.00 113.00 The Yen has continued to strengthen against other currencies, it strengthened USD/JPY High Low 112.00 112.00 2.8% specifically against the dollar compared to the price at the end of January The Yen strengthens 2.8% 111.00 110.48 against the dollar compared 111.00 2018 and 5.3% compared to the closing price of December 2017. The above 110.29 to January 2018 and 5.3% 109.75 109.78 110.00 109.65 110.00 109.31 had a negative effect on the balance of the debt contracted in this currency, 108.94 109.00 108.78 109.00 109.28 109.1 increasing it by US$8.3 million. 108.99 108.92 107.9 107.9107.78 107.68 108.00 108.46 108.58 108.44 107.53 108.00 107.38 107.27 108.05 107.02 107.13 106.73 107.00 107.00 107.41 106.4 107.28 106.72 106.79 106.56 106.6 106.51 106.57 Performance of debt securities in the capital markets and 106.00 106.38 106.00 106.04 106.1 105.55 relevant economic events 105.00 105.00 01-feb. 04-feb. 07-feb. 10-feb. 13-feb. 16-feb. 19-feb. 22-feb. 25-feb. 28-feb. The external yield curve, composed of the most liquid bonds of the Republic, showed an increase of 31bps compared to the end of January; this increase Yields of US Treasury Bonds was leveraged mainly in the middle part of the curve, which is composed of the global bonds 2024, 2025 and 2026, which registered an increase of 35bps on 4.0 average. 14 bps 3.0 As for the local yield curve, it registered an increase of 13bps compared to the Yield (%) 2.0 previous month; where the Treasury Note 2018 showed the greatest variation UST January 2018 increasing by 42 bps. UST February 2018 1.0 In the international context, during the month of February, the economy of the Euro Zone continued without reaching its inflation target, consequently, the 0.0 0 5 10 15 20 25 30 35 40 European Central Bank indicated that it is necessary to maintain its economic Duration (years) stimulus measures, said Peter Praet, Head of the entity. External Yield Curve On the other hand, Jerome Powell presented his first biannual economic 5.0 testimony as the new Chief of the Fed before the United States Congress, in 4.5 2036 2053 4.0 2029 Δ 31 bps 2027 2047 2026 2028 which he showed an optimistic view of the economy and indicated that the Fed 3.5 2025 In the long term the curve 2024 continues flattening would maintain gradual rate hikes; however, his comments agitated the markets 3.0 The increase in yields has 2020 been larger in the medium for being considered an acceleration in the rise of the interest rates. 2.5 term. Yield Yield (%) External February 2018 2.0 External January 2018 The aforementioned, motivated investors to exit massively from their positions 1.5 in treasury bonds, generating a direct impact on the yields due to the increase 1.0 0.5 of supply in the market. The yields of US Treasury bonds rose by 14bps 0.0 compared to January. 0 5 10 15 20 25 30 35 40 Duration (years) Source: Bloomberg (1) NFPS: Non-Financial Public Sector .
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