The Treasury raised 6.61 trillion pesos (about US$4.4 billion) at a debt auction on Wednesday, October 14, against 4.86 trillion pesos of debt falling due, a rollover of 136.14%, the Finance Secretariat said.
A rollover is the share of maturing debt that the Treasury refinances by selling new securities. Investors bid nearly twice what was due, and the Treasury kept the extra cash in its account at the central bank. Amounts are in current pesos, and the amount raised is at cash value.
About 59% of the money went to securities that mature in 2028 and 2029, after the October 2027 presidential election, based on the Finance Secretariat’s result by instrument. That moves repayments past the vote.
The biggest placement was a fixed-rate Treasury bill due January 29, 2027, at an annual effective rate of 27.47%. The rest went mostly into peso bonds due in 2028 and 2029 that pay inflation plus a yield or the TAMAR benchmark rate, and into a dollar-linked bond due January 2028.
The auction again left out the AO29 Bonar, the Treasury’s dollar bond issued under Argentine law, for a fourth straight sale. It trades at yields near 10%, higher than the 8.7% the Treasury accepted in earlier sales, according to market reports.
Analyst Martín de la Fuente, of the brokerage Bavsa, said there was no reason to expect trouble with liquidity or rates, though he calculated that a debt buyback of about 1 trillion pesos made before the auction brings the effective rollover closer to 100% to 110%.
A bill that pays in pesos at the dollar exchange rate falls due on October 30, which the consultancy Equilibra called the next test.