Economy Faces 21 Trillion in Maturities in August
The national treasury must face maturities of 21 trillion in August, of which 4.5 trillion, corresponding to a Lecap issued in April, will mature on the 14th of this month. This will be the first objective of the Ministry of Economy. On Monday, the Ministry of Finance will announce the menu of bonds for the first auction of the month, which will be straightforward, according to Valentín Gómez García, Research Analyst at Adcap Grupo Financiero. In August, the treasury faces maturities of 21.1 trillion. In the first auction of the month, it must meet commitments of 4.5 trillion, all from fixed-rate instruments. Gómez García notes that the amount does not seem challenging, considering that in the last ten auctions, maturities averaged around 8.8 trillion. However, the second auction of the month involves a greater demand, with maturities of 16.6 trillion, of which 7.2 trillion correspond to TAMAR-adjusted instruments, 6.6 trillion to dollar-linked, and 2.8 trillion to fixed rate, all maturing on August 31. Analysts warn that the government's liquidity restriction policy has limits. The Central Bank sells dollar-linked bills in the secondary market to withdraw pesos, but maintaining the interest rate at 23% is complicated. It is expected that, at least until the first auction of August, the BCRA will not make significant changes to its strategy. This month, the government could complete the 2 billion dollar quota of Bonar 29 (AO29), which has negotiated 1.12 billion and pays an annual rate of 6%, maturing on October 31, 2029.
-- Price
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