In the secondary markets, a flow of sales of bonds tied to the dollar and the entry of Mutual Funds were registered this week to position themselves in CER (the segment that adjusts for inflation).
The Ministry of The economy will have to get at least $100,000 million to pay the pending maturities in August. Most of the funds he needed for the month were raised last week in the first call to tender. But in this will be able to test with a relatively small figure how the market’s mood is after the devaluation of 22% carried out by the Central Bank on Monday after PASO, as part of the commitments assumed by the holder of the portfolio Sergio Massa before the International Monetary Fund (IMF).
On this occasion, the Ministry of Finance, headed by Eduardo Setti, will make available to investors five instrumentsall of them in pesos. There will be no linked dollar bonds because it has already been reported that the new parity of the official dollar is going to remain fixed until the October elections, in what may be an invitation to the carry trade.
will return the Lelites for Common Investment Funds (FCI) dated September 18. On the other hand, they are put on the table two LECER (tied to inflation) to November 23 and January 18, which can then be offered in a second round to entities from the Market Makers group. While, there will be two BONCER (also indexed to inflation)one on May 20, 2025 and another on February 14, 2025.
In the secondary markets, in the last wheels, there were a greater interest in financial instruments adjusted for inflation, that can better capture the evolution of prices after the change in the exchange rate. As Ámbito was able to find out, in the first two rounds of this week there were many sales of dollar linked bonds. It is clear that they lost attractiveness as hedging instruments.
Instead, there is an important current of Common Funds behind CER-adjustable instruments. LECERs appear to capture future inflation. The highest demand in the secondary market is for the one that expires in November, whose technical name is X23N3. In other words, the analysts’ recommendations continue to be marked by the short term.
At the first call of last weekthe Ministry of Finance had to cover maturities for some $720,000 million, prior to the PASO, and achieved a roll over rate of 113%. Theoretically, it would have to aim to improve that level if it is not going to make use of the Central Bank’s assistance to finance the primary deficit. Accumulated net financing so far this year reached $2.2 trillion, with a refinancing rate of 131%.
The August chapter closed, after the primary elections that left an unexpected result for the markets, which generated a scenario of extreme volatility, In September, the Economy once again has an important maturity for something more than $800,000 million. A LECER (X18S3) for $680,000 million and a Dual Bond (TDS23) for $175,500 million stand out, among other commitments.
Meanwhile, for the remainder of 2023, the Government will remain to renew the equivalent of $12,291 million, according to estimates from the Congressional Budget Office (OPC).
Source: Ambito
