Debt: the Government released pesos and obtained US$ 266 million in the market

The Ministry of Finance awarded Treasury securities for a total of $13.22 billionafter receiving offers for $ 14.93 billion. In this way, the Treasury was not able to refinance all of the commitments that were due that day.

Thus, it is expected that the difference will be covered with the funds available in the Treasury Palace account at the Central Bank.

The release of pesos corresponds to a time when there was a lack of liquidity and interest rates began to rise in the market, amid the increase in seasonal demand for currency to pay the bonuses.

Most of the placements were concentrated in fixed rate instruments. In particular, they were awarded $4.18 billion in a Lecap maturing in November 2026, which ended with a monthly effective rate of 2.1% – in line with expected inflation -, equivalent to an annual effective internal rate of return (TIREA) of 28.32%.

There was also significant demand for inflation-adjusted securities (CER) and instruments tied to the wholesale rate (TAMAR). Among them, a dual CER/TAMAR bond maturing in December 2029 stood out, for which the Treasury captured $3.77 billion. In turn, it placed a TAMAR bond for $2.43 billion and three other CER bonds for a combined amount of $2.15 billion.

Regarding the debt linked to the exchange rate, Economía awarded two dollar bonuses linked for a total close to $690 billion and a bonus hard dollar (AO28) by US$266 millionwith an annual effective internal rate of return of 7,83%.

In addition, he reported that next Monday he will hold a second round exclusively for this last instrument, in which he will offer up to Additional US$100 million at the same cut-off price that emerged from this Thursday’s tender.

“The dollars obtained will be used for payments to the International Monetary Fund (IMF), so it remains to be seen how the negotiations with the World Bank, the Inter-American Development Bank (IDB) and the Development Bank of Latin America and the Caribbean (CAF) will end to finance the maturity of Bonares and Globales for USD 4.3 billion in July,” the consulting firm LCG said in a report.

In the market they observed that, in the run-up to this tender, there were interest rate increases in the secondary market. “In the round prior to the last tender in June, rates rose in all peso markets: both the CER curve and the nominal fixed rate curve,” Outlier said. “The phenomenon is attributed to seasonal factors and not to a massive closing of positions of carry trade“he concluded.