The government ranges from decisions that seek to raise rates to contain the price of the dollar, and measures that tend to cut the returns in short -term pesos not to hit the activity.
Against the need for the liquidity of the banks, and in the prior to new tender of the Treasury, Short rates hit a strong jump this Tuesday, August 12. The yield of the cion boución came to touch 80%although later closed around 50%, above 45% of Monday’s closure.
The rates extended the upward trend that has been observed for a month and intensified last week, a dynamic driven by the government to contain the climbing in the price of the dollar. In this context, from the ruling diagram they strategies to reduce the cost of indebtedness.
The increase in rates occurs within the framework of the new monetary scheme, which began on July 10. “The new scheme of monetary aggregates, where the amount of pesos is set and the rate is determined endogenously, is in itself a much more volatile system“He explained to Scope The financial analyst, Christian Buter.
The conjunction of shortage of weights and need for liquidity drives short rates, since The demand for pesos exceeds the supply. To this is added the proximity of a new bidding of debt in local treasure currency, which in previous placements validated higher returns. “Nobody wants to buy a title that can be achieved with a prize in the tender“They said from investing in the stock market (IEB).
“The doubt is that it will happen with the post -tender caution rate. If the 30% or not returns,” said Nicolás Cappella on Tuesday, from IEB.
New debt tender in pesos and expectation for rates
It is worth remembering that This Wednesday the Ministry of Economy must face the challenge of renewing maturities for the bulky figure of almost $ 15 billion. Faced with the last increases of the dollar, and the devaluative expectations that usually occur in electoral contexts, it is a possibility that the portfolio that Luis Caputo drives is forced to offer an excessive prize via rates.
However, The Treasury established maximum ceilings for shorter LECAPS, with the aim of extending the deadlines of their placements or maintaining greater liquidity in pesos and thus pressing the downward rates. Specifically, the decision implies that no more than 50% of the funds placed may be used for instruments with maturities below one month.
In parallel, the rumor began to run that the Central Bank will offer active passes against letters with deadlines greater than 60 days that are subscribed in Caputo tenders. The objective would be similar to that of Economics: Provide the banks with liquidity, extend deadlines and cut yields.
In this way, the government is at a difficult crossroads between allowing greater rates to contain the rise of the dollar, but with a high risk for economic activity, or reduce them to improve the cost of financing of companies, even if this translates into greater pressure on the “green ticket”.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
