At the close of the week, dollar-denominated bonds are all trading in the green. This is not the case for ADRs, which are trading mixed in early market trading.
The main increases are for the Bonar 2041, which climbs +3.6%; the Global 2046, which rises almost 3% and the Bonar 2029 (+2.7%).
It should be remembered that the Board of Directors of the Central Bank (BCRA) decided to suspend the operation of passive repurchase agreements as of July 22. Through Communication A8060, the technical and operational details of the “Fiscal Liquidity Letter” (Letra Fiscal de Liquidez) (LeFi) were established, which will be the main liquidity management instrument of the banking system from that date. “This measure reflects the need to sterilize the excess of pesos issued to cover the fiscal deficit accumulated over the years,” says the research area of Inviu.
“The migration of existing bonds to National Treasury debt, initiated in May with the issuance of fixed-rate Treasury Bills by the Ministry of Economy, is the final step to eliminate this source of endogenous issuance,” the broker added.
The LeFi, issued by the National Treasury and capitalized at the BCRA’s monetary policy rate, will allow financial institutions to adjust liquidity according to economic needs. This bill, with a maximum term of one year, will be negotiable only between financial institutions and the BCRA. The Ministry of Economy will cover the financial cost of the liquidity managed with the LeFi, depositing the necessary funds in the BCRA. This measure seeks to clean up the BCRA’s balance sheet and reduce the sources of issuance that harm monetary stability.
News in development .-
Source: Ambito
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