This afternoon the result of the first tender of the Milei era was known. The Government made Discount Treasury Bills (LEDES) available and the result showed that they were awarded $2 billion who completed the total offer for this call. The Ledes came out at a cut-off price of $927, and the monthly effective rate of 8.66% maturing on January 18.
As to why the cutoff rate was “low” (it remained below the fixed term rate), the economist Gabriel Caamano of Ledesma explained: “The market began to worry in recent days about what was going to happen that They forced the tender with so much liquidity, especially banking, and that is why the rate was unattractive“.
“The banks are in prison because they have the floor with the repo rate at 8.6% and they began to offer a lot from there. The rate came out close to the rate that passive repos currently have, that is, with the change in today’s latest liquidity regulations that has already begun to become clearer,” he added.
“Although the maturity was anecdotal, the attention was drawn to the discount bill S18E4, an instrument that captured 67% of the financing. It cut at a rate of 8.66% monthly, that is, a TEA of 174.7%. In addition, the Treasury will make an offer to buy back debt in the hands of the BCRA,” they reported from Roman Group.
In this regard, the analyst Salvador Vitelli assured: “The TEA validated today with the LED S18E4 It is just 233 bps above the last tender where a fixed rate instrument was offered (Lelite in October). If we go to the last Lede (August), it is 2175 bps above. All this with the completely different inflation scenario“.
In dialogue with Ambitthe analyst Daniel Osigana He said: “Well, the result is strange, the banks giving a fixed term at 110% and you don’t give them a counterpart to beat that? Nothing happens to the retailer, because their alternative is one that pays 85%. It’s still better to cut out the middleman. It’s strange that they do this to banks.”
“For some reason, even though the CERs are very expensive, they do not stop paying, because they have no other alternative.“, he explained about the instruments that are available in the market. Regarding the plan, Caputo launched: “In addition, we must remember that the liquidation of the field has 20% in CCL. I literally don’t see any flaws in the plan, it’s a complete blender.“.
For its part, Christian Butler From his Twitter account he analyzed: “In an economy with inflationary acceleration where December estimates are above 30%, there are no fixed income instruments (except fixed-term grapes) that beat inflation. “A risk that can end with the calm in the dollars and the fall of the gap.”
Cocos decided not to validate the Lede rate
He CEO of Cocos Capital, Ariel Sbdar, announced that it decided not to validate the rate “since we consider it very low in this context.” “Clients who bid will be able to use the pesos to carry out any type of operation starting tomorrow,” she announced.
And he clarified: “The Lede cut-off rate 4/18/2023 leaves a monthly rate of 8.66%, this is approximately 100% of TNA, well below the fixed term rate line and in line with the repo rate“.
Source: Ambito
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