The Economy Ministry secured AR$858.3 billion in the first bond auction since the primaries, — more than seven times its maturities for this week and the highest rollover rate of the year. The sum is the combined total of two rounds, one on Friday and the second on Tuesday.

De esta manera, se obtuvo un financiamiento neto de casi $723.000 millones, alcanzando la tasa de roll over más importante del año (828%).
Cabe resaltar que se han logrado extender la mayoría de los vencimientos hacia los años 2024 y 2025.

— Eduardo Setti (@EduardoSettiOk) August 18, 2023

On Friday, 644 offers were received, representing a nominal value of AR$1.1 trillion, of which AR$681.5 billion were awarded, representing an effective value of AR$822.2 billion. On Tuesday, during the second round, the government got an extra AR$36.1 billion.

“We are grateful for the outstanding participation of the private sector, which accompanied us with almost all of the bids awarded,” Finance Secretary Eduardo Setti said in a Twitter post on Friday.

Net financing for the month was AR$824.6 billion, “the highest of the year, as was the refinancing rate, which reached 200%,” the Economy Ministry said in a press release. Net financing for the year reached AR$2.96 trillion, implying a rollover rate of 141%.

AR$21 billion was adjudicated in a 30-day Liquidity Bill, which offers an annual nominal rate of 108%. AR$177.4 billion came from a inflation-adjusted bill, payable on November 23. Another bond adjusted to the price index that matures on January 18, 2024, collected AR$128.7 billion. These inflation-adjusted bonds got a combined extra AR$36.1 billion on the second round.

Another inflation-adjusted bond (T6X4), which gives an additional rate of 3.75% and matures on May 20 next year, raised almost AR$119.4 million. A similar bond (T2X5) that grants the inflation rate plus additional interest of 4.25% to be paid on February 14, 2025, raised AR$375.6 billion.

According to a report by the Ecolatina consulting firm, the rollover was maintained “despite the turbulences” due to Javier Milei’s surprise victory in the primaries and the 22% devaluation of the peso that the government implemented afterward.

“However, the counterpart of the increase in financing was once again a greater use of inflation-indexed instruments,” they added. As in the last auction, no dollar-linked instruments were offered.

The next bond auction is scheduled for September 14.