renewed all maturities and managed to reduce interest rates

The Treasury issued $21.3 billion in peso bonds, representing a refinancing ratio of 102% of maturities

12/11/2025 – 7:55 p.m

The Ministry of Finance managed to close the year this Thursday with a tender that exceeded market expectations and allowed the completion of the 2025 financial program. In the only call scheduled for December, the Treasury issued bonds denominated in pesos $21.3 billionwhich implied a refinancing level of 102.01% regarding the due dates of the month.

In a statement, the portfolio reported: “Treasury announces it has awarded a total of $21.27 billion in today’s tender after receiving bids totaling $23.37 billion, representing a 102.01% rollover over this day’s terms.”.

The result of the tender surprised the market

The result surprised even the market, which expected more cautious behavior at the end of the year due to seasonality. The stock brokerage firms estimated that the private companies were short 13 billion dollarswhile the Ministry of Finance came to this tender with a small amount of cash on hand: barely $3.4 billion in your central bank account. There is also a crucial factor: in December, the demand for pesos increases due to the payment of bonuses, which reduces the available liquidity.

However, and despite the fact that the government has cut interest rates again, Finances have swallowed up a significant amount of pesos. Operators warned that heavy market takings had “dried up” the market on a day that was also marked by another piece of relevant information: retail inflation accelerated in November 2.5%about private estimates.

Below you will find details of the bonds placed in each segment:

LECAP/BONCAP

• 04/17/26 (S17A6): $2.72 billion – 2.40% TEM, 32.92% TIREA
• 05/29/26 (S29Y6): $2.49 billion – 2.32% TEM, 31.62% TIREA
• 11/30/26 (S30N6): $1.40 billion – 2.30% TEM, 31.37% TIREA
• 05/31/27 (T31Y7): $1.35 billion – 2.40% TEM, 32.92% TIREA

CERIUM

• 05/29/26 (X29Y6): $1.14 billion – 6.33% TIREA
• 11/30/26 (X30N6): $3.14 billion – 7.28% TIREA
• 05/31/27 (TZXY7): $2.81 billion – 8.14% TIREA
• 06/30/28 (TZX28): $3.61 billion – 8.88% TIREA

TAMAR

• 08/31/26 (M31G6): $2.54 billion – Margin 4.43%

dollars linked

From the business side, they emphasized that the performance was good “against the background of high demand for money due to seasonality at the end of the year, which led to some market uncertainty regarding the ability to refinance all maturities.”.

In addition, the ministry highlighted three points that, in its opinion, are a sign of confidence in economic policy:

• The average reduction in TEM of fixed rate bonds of 20 basis points regarding the last tender.
• The 100 basis point decline in the TEA of CER due May 2026.
• Interested in the long CER sectionwhere more than 3.6 billion in the TZX28 with an effective rate of less than 9%.

Another fact that the finance department celebrated was that average lifespan of 1.2 years The proportion of new debt issued is twice the average of the last three auctions, which they see as an important step towards extending maturities and avoiding the “short-termism” that characterized much of 2025.

What the market says: Positive signs and expectations for 2026

For Auxtin Maquieyracommercial director of Sailing investmentsthe result was positive: “The tender left a positive signal for the market because in the final phase of the year, when demand for pesos tends to be tight and uncertainty about the rollover increases, “Treasury has managed to comfortably refinance its maturities with a 102% rollover and demand of over $23 billion.”

He also highlighted investors’ reaction to the rate cut: “Apart from the magnitude conferred, it is the relevant data.” The market confirmed a further decline in interest rates on fixed income instruments and an improvement in financing costs in the CER area”he explained. He also highlighted the rate TZX28that was underneath 9%This is a sign of the market’s greater willingness to extend duration.

In the end, Maquieyra kept it that way “The average lifespan of 1.2 years, almost double the current average, is another indication that the market is ready to support the normalization strategy.”and concluded that although macroeconomic conditions remain challenging, the outcome is satisfactory “a sign of continuity in rebuilding trust and domestic financing capacity”.