Overview
- The Treasury sold the local-law Bonar 2029, taking $1.0 billion from $1.4 billion in bids at a 9.26% yield, with a 6.5% coupon and full repayment at maturity in November 2029.
- Demand was concentrated among domestic banks and institutions after temporary Central Bank rule relaxations enabled dollar funding, with international participation largely absent.
- Proceeds cover roughly a quarter of the about $4.2 billion due in January, and expected $700 million from hydroplant privatizations before year-end would lift coverage toward 40%.
- Markets showed caution after the deal, with sovereign bonds and equities easing and country risk hovering near 630 basis points.
- Officials argue the operation does not add net debt and say remaining needs could be met through a repo or other bank loans, a potential IMF disbursement if approved, or a swap activation.