Credit: After the central bank's decision, the Ministry of Economy also cut interest on its fixed rate bonds.

In the process, the central bank issued fixed-rate bonds with interest of less than 5% per month on the same day it decided to cut another benchmark rate. Reuters

The Ministry of Economy released today Thursday 2.92 billion pesos In the last loan tender, there is more than one amount $450,000 million Maturations in coming days. In the process, it issued fixed rate bonds with interest Less than 5% monthlyOn the same day the central bank decided on another cut in the benchmark rate.

“Employment rates continue to rise,” Treasury said in a statement Checks inflation scenario and lower rates Market”. In that sense, the result of the tender shows that the two large letters (Lecap) published this Thursday had rates. 4.75% and 4.50% Monthly, maturing in October and February. This is a small curiosity 5.5% monthly And with that the leak returned to the previous bond record.

Treasury notes that “employment rates continue to check the environment of inflation and low market rates”.

Lecaps added 1.3 billion pesos In total provided. Another part, more relevant, came through the titles Indexed for inflationby others 1.6 billion pesos. The third option on this week's menu for investors is bonds Dollar attached73 million dollars was the only offer and its tender Declared deserted.

The Ministry of Economy, like the previous loan operations, said, “The surplus of the maturities of this tender ($2,446,836.60 million) and the cash flow accumulated in the exchequer will be utilized to its advantage. Buying dollars To the Central Bank of the Argentine Republic Payment of maturities in foreign currency”. According to the estimates of economists Salvador Vitelli (Romano Group), that surplus represents approx USD 2.78 billion. The next dollar bond maturity will be in July.

Economy Minister Luis Caputo and Finance Secretary Pablo Quirno, in an archive photo. EFE

The next few days will be the least demanding of April for the Finance Ministry, because – too Maturity “towers” are lacking This led to the last bond exchange in March – and it will almost certainly close by the end of the month 3 billion pesos Payment obligations for two bonds, one of which is dual, will pay inflation or exchange rate volatility.

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The cut in Treasury rates coincided with the Fed's. The monetary authority cut by 10 basis points Interest rate Note from 80% 70% annual nominal. This is the third cut in the local currency's yield since the change of government, putting it back below inflation to its lowest level (69.5%) since September 14 last year. This decline promises to further reduce fixed term deposit rates, and since there is no platform for efficiency, they can provide savers and a reduction in rates at the system level usually accompanies retail banks.

Legacs added 1.3 billion pesos to the total disbursements. Another, more relevant portion came through inflation-indexed bonds, for another 1.6 trillion pesos.

This is the third adjustment of the monetary policy rate used by the central bank in four months since its arrival Santiago Boucilli Under Management, to the post of Chairman of the Company Javier Miley. After a 118% exchange rate hike on December 13 that took the official dollar to 800 pesos, the decision was made to immediately cut the system's guiding rate – which is also transmitted to credits and fixed terms – from 133 to 100 percent. . And on March 13 there was a fresh drop to 80 percent. Economists agree that these rates continue to remain negative in real terms in the fight against inflation, helping to gradually reduce BCRA's liabilities.

One of the issues is the migration from pegged securities (CER, official exchange rate or dual) towards a fixed rate International Monetary Fund In the last technical report approved at the end of January. The system, by definition, fosters domestic debt Under-coded And A long time. Fixed-rate peso bonds are a small fraction of Treasury bonds in circulation. According to the latest monthly report published by Economia, as of February 2024, the A 40% loan cannot be adjusted in local currency.

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