The Finance Secretariat announced the list of peso-denominated bonds scheduled for Wednesday’s debt auction. The statement surprised the markets by omitting the BONTE 2030, a bond that is subscribed in dollars and paid for in local currency.
The BONTE had been offered in the past two auctions, and the market expected US$500 million of it to be on offer this round, since the Treasury had announced its intention to place about one billion U.S. dollars per month.
The Bonte 2030 debuted in the second call for bids in May with US$1 billion, paying a yield of 31%. In the first call in June, another $500 million was placed at 28%. The market considers these rates high, as yields of 22% or 24% were expected two weeks ago.
However, Finance Secretary Pablo Quirno decided to withdraw it this time around and begin offering short- and long-term fixed-rate capitalizable securities, which are in greater demand in the context of falling inflation.
No inflation-linked or dual-bond offerings appeared this time either. The Finance team seems to be concentrating all the offerings on the most sought-after bonds in the market, mindful of the need to achieve a rollover of approximately $10 trillion, according to private estimates.
What securities will the economy ministry offer the markets?
For the short term, Capitalizable Bills (LECAP) are available on July 31, August 29, September 30, and November 28.
For the long term, Boncap is proposed for January 30 and June 30, 2026, and for January 15, 2027.
In the first call of the month, some $3.8 trillion matured, but the government carried out a 168% rollover. With the surplus, it repurchased dollar-denominated bonds held by the Central Bank. The rates paid ranged between 30% and 35%.
Matías Waitzel, partner at AT Inversiones, told Ámbito that “with the current fixed rate, given the increases seen in recent trading sessions, there will be significant demand. Therefore, we believe it will be possible to freeze this rate, which in real terms is quite high.”
Originally published on Ámbito