The Ministry of Finance will next week again put Treasury Bills in dollars, but unlike the operations that have been taking place for two years, instead of setting the amount and the rate for each issuance in advance, it will analyze which will be the most convenient offer you will make to the market based on the proposals received from investors.
This was announced Friday sources of the portfolio directed by Luis Caputo, who explained that “it makes sense to go through the mechanism of price discovery” of the market, instead of fixing it from the Ministry, in response to the increase in the volatility of rates in U.S.
It is in this context that the amount to bid will be in relation to the level of the rate that is managed in the market and the financing needs of the Government, explained the sources.
“This is more due to the imposition of the current market conditions, which on the one hand has the ‘international context’ blame, but on the other it has the endogenous element that is ‘the rise in country risk'”, he reflected at the level. com Diego Martínez Burzaco, director of MB Inversiones.
In this way, “instead of setting a fixed rate, what the Treasury does is to determine the market that cost, seeing the possibility of improving something in basic points if the demand is large,” Burzaco explained.
For the analyst, “he is testing the demand and how much will the decision made on 12/28 (changing inflation goals) be. It is a competitive tender to see how the Treasury can close the financing gap of the year locally.” .
This measure is taken after Caputo spoke on Thursday in New York at the offices of the investment house JP Morgan, where he reiterated the solvency of Argentine economic policy, before holders of securities.
Specifically, the truth is that between Tuesday at 10:00 and Wednesday at 3:00 pm, the Ministry of Finance will receive bids for the acquisition of Treasury Bills in 182-day Dollars, which previously had a rate of around 2, 80%, and another to issue 342 days, which yielded about 3.10%.
“Already in the last tender of Letes in dollars we saw that the term of placement was reduced and the rate was maintained, so annualizing this rate implied a more expensive annual cost in Letes,” said the director of MB Inversiones.
Along with these two issues, a third of Treasury Bills in 182-day Pesos that can be capitalized monthly at the nominal monthly rate of 2.06% will be tendered.
In the auction of Treasury Bills denominated in Pesos and in US Dollars, it will be carried out by means of a price indication, in which there will be a competitive section and a non-competitive section.
For the purpose of participating in the competitive tranche, the subscription price expressed for each $ 1,000 nominal value must be indicated with two decimal places for the Treasury Bills denominated in Pesos and $ 1,000 of nominal value with two decimals for the Treasury Bills. denominated in Dollars, while for the non-competitive tranche, only the amount to be subscribed must be consigned.
The subscription of all the instruments can be made in Pesos as well as in US Dollars and the exchange rate for the subscription will be that corresponding to Communication “A” 3500 of Tuesday, March 13.