In the first round of the month, the Ministry of Economy had to cover commitments for $38,228 million, and managed to get the market to lend it an extra of more than $25,364 million. But for this he had to revalidate a high rate.
A discount bill (Ledes) due February 28, 2023, a dollar-linked bond due July 31, 2023 (T2V3) and a fixed-rate bond due May 23, 2027 (TY27P) were reopened. . In addition, a new Lelite was issued maturing on November 30, 2022, exclusively intended for mutual funds. 408 offers were received, which represented a total face value of $93,488 million.
Economy reported that of the total number of new securities placed, 6% corresponded to instruments linked to the dollar and the remaining 94% resulted in fixed-rate instruments. Regarding the maturity horizon, 22% were instruments maturing in 2022, 40% maturing in 2023 and 38% maturing in 2027.
The data to take into account is that the Ledes that expires on February 28, 2023, which is a kind of reference for the market in the last placements, paid a nominal rate of 87.15%, which implies an annual effective rate close to 116%.
In other words, the Treasury continues to pay a high price for its strategy of placing fixed-rate instruments to lower the proportion of debt adjusted for inflation or for the dollar. There are two reasons, according to the market. One is that In this way, it tries to get the banks out of the remunerated liabilities of the Central Bank that yield less. The other is that in the event of a disruptive event, non-indexed debt will prevent it from affecting public finances. Of every $10 that he managed to place in this opportunity, $9 was at a fixed rate.
On the other hand, the finance strategy seeks to offset the cost with a National Treasury Bond (BOTE) maturing in greater than 2027, that although it pays a nominal rate of 43%, it is used so that the banks can remunerate reserve requirements before the Central Bank and for this reason it is in demand.
Now ahead, as sources from the Treasury Palace had anticipated to Ámbito, a debt swap operation for the total maturities remaining until the end of the year: around $1.7 billion. That is why this tender served the Ministry of Finance to test the mood of the market.
Analysts expect the Treasury can “clean” the maturities of debt in pesos that remain until the end of the year. This was pointed out by Paula Gándara, CIO of Adcap Asset Management, and Sebastián Suh, portfolio manager of the same company.
“We hope that this week’s swap will clear the maturities and that the Treasury will show that the tenders can be separated from the electoral calendar. so that it can be financed better and for the health of the financial system”, said Gándara.
For his part, Suh indicated that “the market is cautious, but last week CER instruments experienced a small rally with a sort of shortage of bonds because the Treasury came out to announce that there was a new tender for fixed-rate one-bill debt. short and a dollar-linked bond”. “The market is more positioned in CER instruments,” he explained.
Source: Ambito
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