Overview

• The Treasury placed ARS 7.339 trillion in its latest auction, covering ARS 5.6 trillion of maturities for a rollover of 130.2%.
• Investor interest centered on dollar-linked instruments such as Lelink and related bonds after the offer was expanded to include short-term options.
• The operation followed a 10-point cut by the central bank that set the overnight policy rate at 25%, which compressed peso yields in secondary markets.
• Officials aimed to capture exporter receipts reported at about US$7 billion by providing instruments viewed as exchange-rate hedges.
• The central bank announced a return to cross restrictions for access to the dollar on the same day, coinciding with stronger demand for currency protection.