Market sources commented to Ámbito thathe result of the second tender in July remained within expectations by the operators.
Economy awarded $515,861 million, in a tender for five securities maturing in 2022 and 2023. 1,266 offers were received, representing $514,805 million in nominal value. “Considering the two tenders of the month, a positive net financing of $318,200 million pesos was achieveddoubling the total maturities of the month after the conversion operation,” the ministry said.
A LELITE was issued with maturity on August 16, 2022, the LEDE was reopened on October 31, 2022, two bills adjusted by CER (LECER) were reopened, whose maturities are January 20 and May 19, 2023, and reopened a US dollar-linked bond due July 31, 2023.
In the case of the LECER maturing in May of next year, the government will pay inflation plus 2.5 percentage points.
According to the detail reported by the Palacio de Hacienda, of the total financing obtained, 64% were represented by CER-adjustable instruments, 29% at a fixed rate and the remaining 7% resulted in dollar-linked instruments. Beyond what the market expected, that the demand for paper tied to the dollar would rise due to a potential devaluation, it remained within the usual. Likewise, 30% of the amount placed corresponded to instruments maturing in 2022 and, the remaining 70%, to instruments maturing in 2023.
During the last fortnight of July, the National Treasury faced maturities for a total of approximately $324,300 million, therefore, In this tender, a net financing of close to $192,000 million was obtained. Considering the two tenders of the month, a positive net financing of $318,200 million was achieved, doubling the total maturities of the month after the conversion operation.
the market analyst Christian Butler considered that the result of the process “was very good for the government but to the point of having to validate a sharp rise in rates”. Buteler said that this month the Palacio de Hacienda “obtained more than $300 billion than it needed.” For the analyst, one of the first directives sent by the new Economy Minister, Silvina Batakis, is being complied with, as soon as she took office, that the Treasury “is going to lead the positive market rates” because it is the one that needs the financing. Buteler estimated that annual inflation will be above 80%. “The problem is not the rate but inflation,” said the economist.
It was a key operation for the Government since the official intention was to avoid closing the month with bulky requests for monetary assistance to the Central Bank to finance the fiscal deficit, at a time of strong financial and exchange tensions. In Economy there was satisfaction with the result.
Source: Ambito
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