Specifically, the agreement states that this year and the next two the Treasury must obtain new debt in pesos for the equivalent of 2% of GDP. In that train, the extra balance of this tender is added to what was achieved in the first two months and raises the accumulated net funding in 2022 to about $450,000 million. This Thursday you will be able to increase that amount in the second round of the auction, in which the market makers (a group of banks and Alyc) will be able to subscribe up to an additional 20% of the instruments that are part of the program (Ledes and Lecer).
All in all, key to Wednesday’s result was the use of inflation-linked debt securities (CER), which accounted for 84% of the amount placed. If these instruments already had a leading role in financing the Treasury, with the spike in prices measured by Indec in February (4.7% monthly), investors’ search for coverage was magnified. Even more so considering that the projections for March are even higher, influenced by the impact of the war in Ukraine on the price of commodities.
The agreement with the IMF explicitly establishes the commitment to gradually reduce the weight of the indexed debt in public financing. However, in principle, this objective will be postponed until the peak of price escalation is over. This is recognized by official sources consulted by Ámbito. It is that the central objective at this point is to expand the net indebtedness in the market to meet the monetary goal. And today the flow of investors towards government securities seems to be conditioned to the supply of bonds and CER bills.
Specifically, the Ministry of Finance placed $10,383 million in a new Lelites (exclusively for mutual funds) as of March 31 with a nominal annual rate (TNA) of 36%. It also raised $51,633 million in three LEDs in June, July and August, with fixed rates of 46.05%, 47.29% and 48.27%, respectively. Thus, the officials validated an increase of between 1 and 1.5 percentage points of the annual effective rate (they ruled out more than a quarter of the offers in the shorter Ledes), below the rise that occurred in the secondary market after of the February inflation data. “Surely with the passing of days it will dissipate, also depending on how the BCRA reacts,” commented an official source. In the next few hours, the Central Bank’s board will analyze a new rate hike in response to the rise in the CPI and in line with the pattern agreed with the IMF of converging to positive real yields (see page 4).
All the rest of the placement was via indexed instruments. In particular, the basket made up of 60% by Lecer in December and 40% by Lecer in February. Together they attracted $272,240 million with two real rates of 0% and -1.25%. As for the Boncers, they received: $35,697 million in Q2X3 at a real 0.4%, $8,014 million in Q2X4 at 1.45% and $3,148 million in TX26 at 2.65%.
Source: Ambito
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