The government has managed to pass a major test By placing $13.99 billion in new debt in a week in which $14.6 billion is due. That means it It was able to refinance 96.48% to maturity at a time when deposit holdings fell to $4.4 trillion.
thus, It only has to issue about $450,000 million to meet the payment of what is not renewed, a figure that barely exceeds 10% of its savings. “In the context of limited treasury liquidity, the data are positive,” they said in their assessment from the Center for Political and Economic Studies (Cepec).
“Percentage of Extension Interesting, especially considering the few pesos the Treasury Department has left in the BCRA account. In addition, deadlines are extended and concentration is avoided and with rates in line with inflation expectations for the coming months,” agreed financial analyst Christian Boutilier.
“Good result with minimal premium in price with respect to the secondary market,” noted Sebastian García, from Clave Bursátil.
It was all after a tender in which ten titles were put on the market (Six of them were other reopenings issued before) with longer terms than they saw as usual – although less likely than those achieved in the first auction after the elections – and ranged between 77 and 518 days and after demand was achieved for 9 of them.
In addition, in some cases it was possible to reduce costssince they generated returns of 37.55 to 34.27% per annum nominally – up to a point and a half higher for fixed-rate notes – And from 7.34 to 7.79 above inflation in the case of instruments issued with an adjustment by the CER, which had just paid 9.5% at the beginning of the month.
They harmoniously agreed on a margin of 4% on the price of Tamar (after verifying the 5% 20 days before) and 3.45% above the official dollar decline In exchange for the “small portion” of $0.45 billion he raised with Leelink that is set to expire at the end of April 2026 (the other declared void), The paper came to accept a 10% surcharge in mid-October.
“Securities with a fixed rate or with inflation-adjusted capital concentrated 63% of what was granted (36% of the total only in the 77-day BONCAP). In addition, demand for DLK instruments was low; Analyst Federico García Martinez noted after learning the results that $317 million had been granted in Lelink as of April, with a total demand of $426 million when there are maturities of this type equivalent to $2,691 million.
The closetwhich made short-term deposits and securities that provided exchange coverage in the run-up to the elections to try to reduce pressure on the dollar, It faced maturities approaching $16 trillion, a figure equivalent to 39.5% of the monetary base.
To facilitate the management of this obligation, in the run-up to today’s auction, I exchanged with the central bank (BCRA) – which has acquired many securities through market intervention to try to maintain their prices in these months of political uncertainty – its $1.3 billion holdings of Lecap (S28N5) and a dollar-linked security (D28N5) for Bonser (T30E6) and other dollar notes (D16E6) due to mature next January.
In this way, it reduced the immediate liability to $14.6 billion. Although measured in fixed pesos, maturity has remained the second most challenging in recent years.
Hence, the government, through the BCRA, called for another maneuver to facilitate the renewal.
As did other departments. Although it eased the very high requirement imposed on banks regarding reserve requirements, at the same time it maintained the rule that allows them to accumulate it with public securities. -In the case of 3.5% of demand deposits collected from the public – in bonds (except linked to the dollar) Encouraging them to acquire them in initial public tenders within a period of no less than 60 days.
Moreover, as if that were not enough, it extended the additional 5-point condition issued in August until the end of March. On demand deposits that matured in November “To try to secure the renewal of the $4.4 billion owed on the Tamar address (M28N5).”recalled from Facimex Valores. Of those bonds, $2.73 billion were placed this time.
“The decline of just under 100% is partly due to a greater preference for liquidity at the end of the year. Although the February Lecap was the most in-demand instrument (which had to give up a premium of about 200 points), the Treasury was able to continue expanding the Boncap in April 2027, thus increasing liquidity in the long part of the fixed interest rate curve,” assessed Eric Ritondale, chief economist at Puente.
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