Tuesday, August 9, 2022

Main Tender: Economy bets on inflation and dollar-indexed securities

Like other market analysis, A report by the consulting firm Anchor by Luis Caputo, former finance minister and former chairman of the Central Bank, It has been highlighted that there is a “severe reduction in the maturity profile with the private sector in the coming months” and that “Improving Credit Risk in Peso Curve”, According to the consulting firm’s estimates, the maturity with the private sector is around $200,000 million per month by January 2023. What is called the “wall effect” in the market, which is the accumulation of commitments, begins in February of next year, when they will exceed $200,000 million. In March, they exceeded $350,000 million, and in April of the following year they exceeded $400,000 million.

Economist Christian Butler mbito told Financiero that “A very important ally of the Treasury is the stock“Beyond the momentary turbulence that occurs in June, the peso will have to look for yields,” he explained. Without the possibility of reaching the dollar, companies try to protect themselves. Butler pointed out that the post-stardom inflation-adjustable There was a fear of devaluation in the bonds for more than a year. Dollar-adjusted instruments appeared, The economist said “The market now demands to be pegged to the dollar” But he clarified that “with this inflationary boom, CER bond is being demanded again”,

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An additional element to keep in mind is that the Central Bank’s money desk has already stopped intervening to support the price in the secondary bond market and is now doing the reverse operation: it is selling what it has bought. and withdrawing sources from the market.

Thus, the Ministry of Economy came out to offer three letters and dollar-denominated bonds for the second tender of the month. First, there is a Bill of Liquidity with New Exemption for General Funds (LELITE)on August 16 at a price of $875 and for an expandable amount of $20,000 million.

then offer One LEDE for October 31st Expandable, with a maximum price of $858.50 per $80,000 million, with an vesting rate above 80%. On the other hand, with the price to be determined in the tender, a LECER BY 31 JAN $80,000 million for 2023 and May 19 from a laser $60 billion expandable.

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whereas, The Treasury proposes to open to the market a bond market pegged to the dollar (T2V3), maturing on July 31, 2023, for up to US$200 million. No maximum price. The instrument is not part of the proposal of a group of banks called market makers. In the first tender in July, the government had guaranteed rates close to inflation. For three months’ bill, he paid 78.9% annually. For LEDEs with terms up to 120 days, they paid 80%.

Nation World News Desk
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