Overview

• The Treasury and the central bank executed a conversion of up to 5.4 trillion pesos of short-term LECAP due August 15 into BONCAP maturing December 15, settling on August 4.
• The operation was authorized by Joint Resolution 548/2025 and leverages Article 38 of Budget Law 27.701 and Article 11 of DNU 331/2022 to swap public-sector debt without currency restrictions.
• To cover the swap, the Treasury allocated 3.91 trillion pesos of unplaced BONCAP T15D5 and approved an extra 1.5 trillion of nominal value under existing operational rules.
• After the swap, yields on peso-denominated instruments fell below 3.5 percent monthly as investors weighed upcoming funding needs.
• Markets now eye massive licitations on August 13 and 27 that will offer around 35 trillion pesos of new bonds to refinance maturing debt.