The increase in BCRA yields validated the increase that occurred in the secondary market on Friday, after the CPI. About $400,000 million mature. The novelty: the Treasury offers a bond to 2025.
Following Sunday’s announcements, the Ministry of Economy launched another key operation for your financial strategy: This Wednesday it will hold the first debt tender in pesos for May. The shock of inflation in April, climbing to 8.4%, led the Government to launch a package of measures with the idea of staying in a kind of “offensive” before the advance in prices. Between them, it was decided that the Central Bank raise the interest rate by 600 basis points of time deposits in the financial system to 97%. This increase was closely aligned with the increase that occurred last Friday in the implicit rates of the LEDs in the secondary markets. Now the Treasury is expected to validate the new yields.
In actual terms, the new reference of the Central for banks is equivalent to 152% per year if principal and interest are reinvested every month throughout a year, while the highest effective rates that the Treasury has validated up to now were 135%. Some Stock Market companies have been recommending buying dual bonds maturing in September and selling future dollar contracts. With this, the implicit rate of return is similar to that paid by the fixed term for retailers.
According to market sources on the first day of operations, the July LEDE (S31L3) which in the last tender was placed at a nominal 95.86% or 135.5% effective rate, operated on Monday around 99.68% TNA or 147.6% of TEA. That is, in terms of TNA, the market I would at least ask the Treasury for an increase of almost 400 basis points compared to the last tender in April.
In this sense, Maximiliano Donzelli, Head of Research at IOL, maintained that “the Treasury follows what is happening in secondary markets.” The analyst commented that since Friday, the markets had raised rates close to 150%, mostly driven by inflation data. “We understand that this time it is the other way around: the Central was adapted to the returns of the market”, explained Donzelli, who recalled that in the last six months the BCRA had its yields slightly below the Treasury, but this time “they go hand in hand”.
Federico Furiasedirector of Anker Latin America, told Ámbito that it is very likely that the Treasury “will have to validate the increase in rates” that occurred in the secondary markets last Friday “if you want to raise financing, taking into account the negative impact of the drought on the financing program and the uncertainty that is generated, especially in the election year.”
This week the Treasury will face the first tender in pesos of the month. This time, the total maturities for the call is $427,904 million, of which 92.7% is in private hands. In this first tender, 43% of the total for the month, which reaches $1 trillion, expires, so it will not be the most difficult test in May.
The Palacio de Hacienda announced the new call. For Common Investment Funds (FCI) it will make available a LELITE due June 16. On the other hand, within the Market Makers Program, two READ, one on September 18 and another on October 18. Among the instruments that are not within Market Makers, there will be a BONCER to August 13 and a letter linked to the dollar to October 31. It will also seek to stretch deadlines. It presents a dollar linked bond as of September 30, 2024 and, what is a novelty, a bonus will be offered in pesos, until August 23, 2025.
Also this Wednesday New rules for Market Makers program entities will debut. This is the group of entities that have the greatest participation in the monthly calls of the Treasury. Until last month, in the second round after the bidding, within 24 hours, this group could access 20% more bonuses. Now they will be able to do it for 30%, but with some differences within the group. Only three entities, which are called “leaders”, which are currently Banco Nación, HSBC and Banco Provincia will have 15% reserved, and the rest of the entities will dispute the other 15%. The Ministry of Finance will prepare a monthly ranking of market makers based on levels of efficiency and participation in the calls.
Source: Ambito
