The government was able to capture $401,680 million to cancel maturities and retain a surplus of $100,000 billion to cover what is coming
External debt bonds fell by more than 4%. For example, the Global 30 (GD30D), which is favored by a government buyback plan, fell 1.8%. Since this official strategy was launched, which also serves the Government to control financial dollars, the GD30D, the bond that would be used to obtain USD 1,000 million in a REPO operation, lost 2% of its value and now its price It is at USD 32,447, very far from the USD 40 that must be reached for the operation to be possible.
The questions that the market is asking about the USD 1,000 million loan that the Government plans
In the midst of a sea of conjecture, operators are closely following the price of Global 2030, the bond that the Ministry of Economy hopes to use to close the operation
The country risk, given the adversity of the debt titles, lost 29 units (-1.5%) and rose to 1,997 basic points. After noon he had drilled all 2,000 points.
“Parities are being destroyed and that is what this bond repurchase plan does not make us understand, where the objective contrary to the one proposed was achieved,” said Salvador Vitelli, a financial analyst and agribusiness expert.
The global financial markets were in the red and Argentina could not be left out
At the rate of falls on Wall Street, the Buenos Aires stock market fell 2.2% in dollars and debt bonds suffered from the fall of emerging markets
Financial dollars were stable. The MEP increased 97 cents to $356.23 and the cash with liquidation lost 40 cents and closed at $368.52. The “blue” dropped $1 to $378 and in the wholesale market the dollar rose 38 cents to $199.46. The Government insists on maintaining the delayed exchange rate.
The Central Bank had an additional cost. It sold USD 292 million of which USD 262 million is explained by the payment of energy imports. Reserves fell 454 million to USD 39,555 million. They pierced the floor of USD 40,000 million, something that had not been seen since December 21.
After the inflation data, the presumption in the market grows that there will be higher interest rates
The CPI for January did not surprise: public securities that adjust for CER did not move, contrary to what happened on previous occasions
“With this number we exceed USD 1,000 million in sales so far this year and it takes us further away from the goal we have with the IMF in the review that we are going to have at the end of March. With today’s sale we have net reserves below USD 5 billion and further away from the USD 7.5 billion agreed with the IMF. Although with this advance payment scheme they estimate that we would save USD 2.1 billion, the problem is that we are in a very fragile reserve scenario to carry out these maneuvers. In fact, foreign currency income from agriculture was barely USD 10 million. Exporters are liquidating in drops. So far in February, they have liquidated USD 340 million, which represents a 75% drop compared to last year and below the historical average of around USD 60 million per day,” Vitelli pointed out.
“Until now it was estimated that USD 14 billion would be lost this year due to the drought. But early frost warning is out and this weekend could be quite cold. Now they estimate that the loss would rise to USD 18.3 billion, 41% of what was liquidated last year,” added Vitelli.
On the other hand, the tender for Treasury bonds confirmed that the market is asking for higher rates. It came to pay 118.2% annual cash for a Discount Letter that expires in May. It is the second highest rate since these bonds were auctioned. Last November, the record of 118.3% annual cash was paid.
A sign that the market is looking for considerably higher rates is that the Ministry of Finance did not want to validate them and left out half of the offers.
Finally, $401,680 million were raised to pay off $300 billion, that is, there was a surplus of $100 billion left to cover the next maturities.
The most searched for and shows a great commitment to rising inflation, was the letter that adjusts for CER and expires on July 16. This title captured almost 53% of the offers, $214,710 million.
The bonds that mature in 2027 had little success and all the supply came from the public sector. The Treasury raised $34,823 million, 8% of what was captured.
Another fact that drew attention was that the highest inflation corresponded to the most protected sector in Argentina: clothing and footwear. “This sector is like a wolf hunting inside a chicken coop. In real terms, they rose 39% in a year when other sectors such as health and communication fell sharply. At the same time, there was talk that the increase in meat was going to be to blame for the overheating of inflation in January. The truth is that, if one looks at the general index, the best-selling cuts rose between 3 and 3.5%. Greengrocers was the sector that increased the most. The meat did not hit in January, which does not mean that it did not hit in February ”.
Stocks were weighed down by poor data coming out of the US on rising retail sales, another sign that US inflation is intact. The rise in the New York Stock Exchange was slight because it reversed the trend as soon as the data was known.
With deals for $3,782 million, the S&P Merval, the leading stock index, lost 1.35% in pesos and 1% in dollars.
Businesses in ADRs -share holding certificates listed on the New York Stock Exchange- increased to $6,591 million because a good round was expected in the United States. The closing was negative and the outstanding exceptions were Ternium (+5%) and Edenor (+3.75%) despite the crisis that Edesur endured.
Finished another hectic wheel. The Ministry of Economy has run out of measures to control inflation and has little left in the reserves to contain the dollar. The market knows this and the dollar versus bond duel will be repeated today.
The BCRA sold almost USD 300 million in the market for the payment of energy importsMarkets: the Argentine stock market falls and cuts a streak of three consecutive increasesGas imports: the Government confirmed that the first payment of the vessels was made by 2023
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