With a large part of the roll over of the month assured, Economy returns to the markets

With a large part of the roll over of the month assured, Economy returns to the markets
September 13, 2023 – 15:27

It has to face maturities this week for $660,000 million, of which it already has the $460,000 million raised in the off-schedule call on September 1.

He Treasury will return to the markets this Thursday with a debt tender in pesos in which it will aim to finish renewing maturities for about $660,000 million, At a time when the impact of the August devaluation has passed and with a momentarily stable official exchange rate, portfolio managers are in search for financial instruments to hedge against inflation, at least until October, when it begins to be a little clearer what the political scenario of 2024 will be like.

On this occasion, Economía offers for the Common Investment Funds (FCI) a Liquidity Letter (LELITE) due September 29. This is a tool that best adapts to the profile of FCI investors who have short-term peso placements.

On the other hand, the Treasury will make available the reopening of a letter adjustable by CER (inflation) as of January 18, 2024 (X18E4). This title can be re-tendered for up to 30% in the second round on Friday for the entities that make up the Market Creators group.

In another segment, it will put inflation-adjustable bonds on the tableBONCER, maturing in May, October and December 2024 and a bond in national currency without adjustment clauses, as of October 2025. The latter constitutes a novelty compared to the last calls since until now instruments with some indexation clause have been included.

In relation to dollar-adjustable securities, the Treasury will offer a dual bond as of June 30, 2024 and a linked dollar as of March 31, 2025. In the first case, demand is verified in the market based on a potential devaluation jump after December 10.

As to Inflation-adjustable bonds are those that are showing a higher level of demand in secondary markets, especially those that close in November. This is because traders assume that the government will be able to sustain the official exchange rate until at least the presidential elections. In this context, instruments that adjust for CER manage to better capture elapsed inflation. Then it is expected that there will be a rotation of portfolios towards instruments adjusted by the official exchange rate.

According to the Ministry of Economythe Treasury already has 70% of the roll over of this call insured, due to the tender outside the official schedule that was carried out on September 1, which left it with about $460,000 million. Equivalent to half of the total maturities this month. Given the high demand for inflation hedging instruments, it is expected that the call will be passed without major problems.

In this regard, the mood of the operators is determined by the evolution of the CPI. A survey conducted by Portfolio Personal Inversiones (PPI) among portfolio managers indicates that 90% expect inflation in August, September and October to be between 25% and 40%, and the rest even estimate it to exceed 40%. .

Source: Ambito

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