Overview
- The Treasury sold the Bonar 2029N, a local-law dollar bond with a 6.5% coupon and a 2029 maturity, in the first such issuance since 2018.
- Finance received about $1.4 billion across 2,500 offers and allotted $1.0 billion, leaving roughly $400 million unaccepted.
- Proceeds are designated to cover January foreign-currency obligations, including $1.187 billion due on AL29 and AL30, within total January needs estimated above $4.2 billion.
- The auction cleared at a 9.26% yield, above the sub-9% target signaled by Economy Minister Luis Caputo, as country risk stayed near the low- to mid-600s and market sentiment remained cautious.
- The Central Bank and Treasury tightened rules to support primary demand, including a 15-business-day parking period for participants, a 90-day holding requirement for banks, and permission for insurers to use collateralized repos in the auction.