“Super Tuesday”: pesos bonds recover but dollar debt punishment continues

In a still adverse global context and with the market attentive to the May inflation data that INDEC will announce this afternoon, the Treasury bonds in pesos bounce this Tuesday, before a key competition for Martín Guzmán’s financial program.

However, the punishment on dollar bonds persists and the country risk adds a new step, to 2,123 points.

Since last Thursday, the Central Bank has deployed a strong offensive in the bond market to try to stop the decline in inflation-linked bond prices given the massive outflow of mutual funds from these types of positions.

According to official sources, in two days the monetary authority has allocated $ 150,000 million to purchase CER bonds.

The strategy appears to have paid off somewhat, at least in light of Tuesday’s returns, where The prices of CER-related bonds have started to rebound.

Before INDEC released official data, Pablo Repetto, of Aurum Valores, said: “Today we will know the inflation data for May, which would be above 5% (our estimate is 5.2%) and the result of the Treasury tender, which surely he will have official help “.

“The intervention of the BCRA and other organizations in the LECER market distorted the curve and made the banknotes auctioned today too expensive,” said the economist.

Meanwhile, dollar bonds have not been able to find a floor and the securities that have entered the stock exchange show reds above 2%.

With these returns, country risk rises again and reaches 2,123 points. The indicator measuring JP Morgan’s banks has deteriorated more than 10% since the beginning of June and is moving at levels it hasn’t seen since the debt restructuring was closed in 2020.

On the equity side, the news is no better. Pressed by the tension on Wall Street, the Argentine companies listed in New York lose up to 2%, with Corporación América at the helm. This pushes the Merval index down by 0.5%.

In the throes of global volatility, the shares of the Buenos Aires stock market they have written off almost all the earnings they had made this year and just up 3.3% since January, well below inflation forecast for the first six months of this year.

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