In the midst of the bond crash on Tuesday, Finance Secretary Eduardo Setti announced with a tweet that they would repurchase $200 million in bonds, 20% of the total planned amount. That day, the headlines they stopped the descentdespite the fact that the purchase turned out to be a lot less than stated.
This Friday, the official reporting to Sergio Massa decided to continue with the same strategyin an attempt to break the fall of dollar bonds that lose up to 1.5% abroad and up to 2.5% at homeincreasing country risk by 1.2%, to 1,951 basis points.
“We made a $200 million repurchase offer on Tuesday and only got market offers around 5% of the amount offered. Continuing with the deleveraging processtoday we will be actively with 10% of the buyback program in defense of debt sustainability,” Setti tweeted.
Without official data, the market had estimated that the Central Bank had allocated between $25 million and $40 million on Tuesday for Tuesday’s buyback and in total would buy about $650 million.
If what you are looking for is deleveraging, it would be convenient for the economy to buy bonds at low prices, so perhaps it would be more convenient not to announce the operation before having done it. Instead, what he gets with the announcement strategy is that bonds go up and the cash-backed dollar goes down.
Source: Clarin
