Overview

• The Treasury refinanced only about 45.7% of this week’s peso maturities, freeing more than 2 trillion pesos into the market.
• The Economy Ministry said fixed-rate peso offerings were declared deserted, with demand concentrating in LELINK instruments tied to the official exchange rate.
• Short-term funding costs spiked to extreme intraday levels—caución above 110% and interbank repo up to 190%—before Central Bank intervention pulled rates down.
• Volatility persisted on Thursday, with the caución rate touching 93% early before sliding near 20%, as the prior day’s decision to inject pesos was meant to stabilize returns.
• Analysts see the shift as a bid for devaluation protection, citing Morgan Stanley scenarios for a weaker official peso and warning of higher financing costs and fiscal exposure from dollar-linked debt.