With the help of the Central Bank, Batakis covered the maturities for $ 122,000 million

Gestures of relief this Thursday in Silvina Batakis’ team after overcoming it first try with the debt in pesos. On a day marked by soaring blue dollar and country risk record Due to the collapse of dollar bonds, the Treasury hedged maturities in pesos with the placement of 122 billion dollars and an exchange that has made it possible to reduce the heavy payments scheduled for the end of the month.

The strategy designed with the Central Bank aimed at extend the renewal terms and cancel the spectrum of a default, with the flattening of the “ball” of commitments. To do this, the Ministry of Finance, led by Eduardo Setti, mainly resorted to fixed-rate instruments and avoided the refloating of inflation-linked securities (CER), which are most in demand by banks and investment funds.

“There was reliefyou have $ 300 billion of the $ 500 billion at the end of the month. And the whole market asking for CER bonds that you haven’t delivered yet, the important thing is that the exchange gave rise to bonds in 2023, That’s what you have to do: stretch a little, flatten the curve and don’t overload the ERC to avoid gigantic deadline balls, “an official source said.

Central Bank intervention was key, with the purchase of $ 1.2 trillion worth of Treasury bills in the month to recompose the stock price, especially with CER, and the early launch by Clarione put options (PUT), a liquidity hedge that will be released this Thursday and has been requested by the banks to ensure that they can get rid of the securities and sell them to the BCRA for a minimum price.

With this help and low demands, Finance covered maturities of $ 8,851 million, for which it secured additional funding of $ 113,800 million. The menu included four stocks through 2022, 2023 and 2027, but more than half focused on bonds through October of this year (Lelite and Lede), which showed a slight increase in rates. The remainder was split between a dollar-indexed bond and a below-market-yielding Treasury bond. The economy ended up paying rates of 50 to 63% for newspapers in pesos and 2% for those linked to the dollar

“Unsurprisingly, as expected, the Treasury did not present any setbacks in Silvina Batakis’ first tender as Minister of Economy. The new finance team raised P $ 122.607 million compared to almost P $ 9,000 million to be paid to July until settlement date, “he said Pedro Siaba Serratechief of strategy of PPI, who considered it “it wasn’t a great result” due to the difficulty of extending deadlines beyond 2022.

For the analyst, the 2027 bond represented only a third of what was issued, below the “captive” question. expectations from banks, pushed by the recent rise in forward rates above the Leliq to the point of placing them on Treasury bonds. As for the dollar-linked bond, it received offers for $ 200 million, but they awarded only $ 75 million at a rate of 2%.

The public sector, with the Central Bank in the lead, would also have been decisive in the exchange of fixed rate and CER bills, both maturing at the end of the month, for which a basket consisting of two new Lede was offered in February and April 2023 . This move made it possible to reduce the month’s maturities by $ 190,000 million, which reached $ 500,000 million.

“There was a strong exchange of Lede and Lecer past due at the end of the month, most of it in the hands of the Central Bank, and then a large number of securities entered for 2023 and 2027, which are for the banks, and a few dollars – linked letters. Almost nothing was due, the financing we see is expansive from a monetary point of view “, She said Gabriele Caamano, Ledesma consulting.

The next race will be Wednesday 27 July.