The Ministry of Finance surprised the markets with a call for tenders for debt in pesos for this Friday outside the usual agenda. In accordance with the schedule established by the Ministry of Economy, the first call of the month was scheduled for September 14 and the second, for the 27th.
As indicated in the Palacio de Hacienda, the decision to go out in search of funding now focuses on the current financial conditions, which are reflected in “a secondary market in demand in CER and dollar-linked instruments.” “In this sense, This tender does not respond to new financing needs but to particular market conditions”, They clarified in the Palacio de Hacienda.
“The instruments offered have all maturities in 2024, that is, no short instruments are offered. Going forward we will continue with the usual schedule, working and analyzing the expiration profile of each of the tenders,” they said in Economy.
Secretary Eduardo Setti’s team will put on the table two Boncers due in May from 2024 (T6X4) and october from 2024 (T4X4), a Dual Bond due in August of 2024 (TDG24) and a Linked dollar bond maturing in September of 2024 (T2V4). All instruments will have a price tender and, with the exception of T2V4, they will be eligible to integrate bank reserve requirements.
What do City analysts think?
Some city analystsOn the other hand, they consider that the Government would be taking advantage of market conditions, but that they will try to get money to finance the last package announced by Sergio Massa that it has a fiscal cost of $730,000 million.
stock exchange society Personal Portfolio Investments (PPI) highlighted that “the Ministry of Economy communicated a tender that is outside the official schedule.” “We understand that this movement comes from the urgent need for financing within the framework of the launch of the new ‘Plan Platita’ for 0.4% of GDP,” PPI said in a report. The alyc points out that “the economy minister Sergio Massa announced a series of measures that reflect an increase in public spending for electoral purposes.”
“In turn, it should be noted that of the $723,000 million obtained in the last auction, $500,000 million were used to cancel Transitory Advances (AT) for this amount. Leaving, thus, a harvest for fiscal needs of $223,000 million. Although this amount may seem large, in this context of strong fiscal expansion, part of this amount could have already been used”, points out PPI.
The entity states, then, that “in this unexpected opportunity, Finance captures our attention by offering reopening of dollar-linked and CER-adjusted bonds.” “First of all, the Finance team reopens the BOLI24 to September 30, 2024 (T2V4) and the August dual (TDG24), which may be beneficial for the liquidity of both instruments,” the report anticipates. On the other hand, it also reissues two BONCER24, maturing on May 20 (T6X4) and the other on October 14 (T4X4), both of next year. “Within these alternatives, we believe that the August Dual (TDG24) could be more attractive than its DL pair, especially if they validate an attractive rate above yesterday’s secondary (DL -8.7%),” PPI indicated.
Source: Ambito
