One of the instruments offered, the Dual Bond to February 2024 managed to raise $102,672 million, and was one of the most popular titles. The other long instrument, a Treasury Bond (Bote) to May 2027 (aimed at banks), managed to capture $36,896 million.
Walter Morales, CEO of the administrator WISE, told Ámbito that Economy “had no problem placing Dual 2024.” “Common funds played an important role on the demand side,” Morales noted. The dual, which adjusts for inflation or for the official dollar depending on what goes up the most, received offers for US$733 million, and US$710 million were accepted. Bote27 was attractive to banks because it can be used for reserve requirements, it received $33,633 million, and $32,163 million nominal value was awarded.
The Ministry of Economy reported that 1,485 offers were received in the tender, representing a total of $324,730 million at nominal annual value, awarding an effective value of $329,524 million.
The instrument menu was also made up of a LELITE as of October 21, a discount bill (LEDE) with maturity on February 28, 2023 was reopened, a CER-adjusted bill (LECER) with maturity on February 19, 2023 was also reopened. May 2023 and a new one of this type was issued maturing on September 18, 2023.
Of the total financing obtained, 24% was represented by fixed-rate instruments, 45% by CER-adjustable instruments. and, 31% to the DUAL rate instrument. “Likewise, 43% corresponded to instruments with maturity prior to the PASO, 57% to instruments after the PASO, with 75% of the latter corresponding to 2024 and 2027”, stated Economy.
In the market, the operators have not yet completely dispelled doubts about a potential redrawing of maturities in the event that the opposition acceded to the government in December of last year.
Regarding the final stretch of Mauricio Macr’s government, the former Minister of Finance, Hernán Lacunza, had “reprofiled” some letters. In a public talk, the vice-president of the Central Bank, Sergio Woyecheszen, considered that this measure was “one of the most important economic policy errors of the last 100 years.”
In fact, last June there was a run against bonds in pesos due to rumors that the opposition did not agree with the accumulation of debt in pesos that the Alberto Fernández administration was taking on.
However, some operators raised in the last hours that the policy that the Minister of Economy, Sergio Massa, has been following now, of a reduction in public spending, is having a tacit endorsement of the economic referents of the opposition, which suggests a rebuilding of credibility.
In a prudent manner, the Treasury tries to move away from the maturity horizon to avoid an accumulation of unsustainable commitments. In October there are maturities in national currency for US$2,155 million, but already in November they rise to US$5,550 million. In December there are another US$6,018 million. This makes it possible to anticipate that Massa can define a new bond exchange in the immediate future.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
