Inflation experienced a sharp drop in October, to 2.7%, the lowest level since Javier Milei took office. So far this year there has been an increase of 107% and in the year-on-year comparison it reached 193%. With this data, the fixed rate instruments in pesos were the big winners, with positive real returns, despite the lower interest rate that the Central Bank ordered last week (it took it from 40% to 35%).
Lecaps
National Treasury bills capitalizable in pesos, known as LECAPs, are short-term debt securities issued by the National State. These instruments pay an income that is capitalized month by month until the maturity date.
On Tuesday, the Lecaps operated with nominal rates of between 36% and 34% annually in the maturities scheduled between the end of November of this year and the end of March 2025, which implies monthly returns of between 3% and 2.8%, respectively. Therefore, they manage to have a somewhat positive performance. If the inflationary trend continues downwards, LECAPs can still be the star of the market.
Fixed term
The reduction in the monetary policy rate by the Central Bank (BCRA) generated a change in the returns offered by banks for fixed terms in pesos. This modification, which represented an average adjustment of five basis points less, implies lower profitability for savers, but maintains a positive rate. For example, the returns of the main banks are between 25% and 39%, which gives a Monthly Effective Rate (TEM) of between 2% and 3.25% and Banco Macro is the one that provides the highest among the private ones.
Bitcoin
The cryptocurrency rose more than 14.7% in October, reaffirming that October is its most bullish month. That is why those who invested in this cryptocurrency beat inflation by far.
Bonds and shares
From highest to lowest, Argentine bonds were the best investment in October, with an average increase of 12.2%. Behind the bonds, with a rise of 8.9% in pesos (but 12.6% measured in dollars), Argentine stocks also had a month and also beat them by a wide margin.
He S&P Merval rose 7.9% in pesos during October, to 1,848,744.26 points, but measured in dollars (CCL) it jumped 17%, ending in 1,593.33 points. Thus, the main increases in pesos during the month were for Banco BBVA (+23.9%), Edenor (+21.5%), and Grupo Supervielle (+18.8%).
For their part, the shares listed on Wall Street They stood out in dollars: BBVA rose 32.8%, Edenor, 31.3%, and Grupo Supervielle, 28.1%.
For their part, dollar bonds rose strongly during the month. The largest gains were led by the Bonar 2041 (+17.3%), the Bonar 2035 (+16.6%), and the Bonar 2038 (+16%).
Source: Ambito
