Before "Super Tuesday," the government placed a debt of $ 44,955 million at an annual rate of 26%

July 16, 2018 – 20:29
The second "test" of the market has arrived since Luis Caputo is in charge of the Central Bank.

The government placed a debt of 44,955 million pesos on the Bonos del Tesoro Nacional (BOTE) at a fixed rate due in 2020, the Ministry of Finance reported today. The amount was awarded at the brokerage price of $ 1,019.50 per $ 1,000, representing an annualized half-yearly base of 26%, the portfolio specified.

The government received $ 44,965 million, or $ 10 million more than was awarded in today 's call for tenders. Last June, as part of a similar call for tenders, the government had already awarded $ 55,753 million to BOTE 2020. With the current bidding call, BOTE 2020 will be therefore already outstanding for a nominal amount of $ 100,708 million.

last month, the discount rate was 26% nominal annual, which represents an annual effective internal rate of return of 27.69%, slightly higher than the rate that the government had to pay today. ; hui. The bond will bear interest at the annual nominal rate of 26% and will be paid for the semester due on May 21st and November 21st of each year until the expiry date, depending on the terms of the lease. 39; offer.

Banks can use this type of bonds as part of the increase in the reserve recently determined by the Central Bank. The Ministry of Finance could use some of these funds to pay the central bank non-transferable invoices and they will use these funds for the rescue of Lebac, which will be done tomorrow.

Other "supermartes"

The government will face tomorrow another test of fire in economic matters, since the Indec will repel June inflation and of the semester, while the Central Bank will carry out a new megalicitation of Lebac.

the last two weeks, the dollar seemed to find a point of balance far from the record of $ 29.57 in the middle of the exchange rate, the market expects data to be released by Indec and the monthly auction result conducted by the monetary authority

Private estimates indicated that inflation in June was between 3.5% and 4%, and warned that it was "the highest in two years". According to a study of the Statistical Institute of Workers (EIT) of the Metropolitan University for Education and Labor (UMET), the cost of living climbed in twelve months to 29.5%

"There are services in which monthly inflation has recorded increases of up to 7.5 points, such as recreation area, 5% in health, transportation and communications (4.3% ), "the report said. For its part, economist Fausto Spotorno, a member of the Orlando Ferreres y Asociados study, pointed out that inflation was 3.9% in June.

Meanwhile, Eco Go consultants estimated the inflation measured by its retail price survey (RPM) showed an increase of 3.7% in June

Lebac [19659003] In turn, tomorrow the Central Bank will have to face a "test" in the city of Buenos Aires specifying the tender Lebac. It has a significant deadline of approximately $ 536,000 million, an amount that market badysts believe will not be renewed in its entirety.

This will happen after the government issued a call for bids in dollars a few days ago. In June, the Central Bank had only renewed 60%, a total of $ 308,473 million, of the maturity of Lebac for $ 514,779 million, despite the rise in the exchange rate. 40% interest in the record 47% annual for the short term, in order to make the peso more attractive and curb the demand for dollars.

Objectives

Clearly the proof of this Tuesday will be that the Central Bank can renew a good part of the maturities, but avoid that the overweight will still stress the dollar. This does not mean that there may be an upward correction after the last few weeks of loss.

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