Overview

• The Aug. 27–28 Treasury auction adjudicated 7.667 trillion pesos, a 114.66% rollover, after higher reserve requirements steered banks into Treasury paper.
• Short‑term yields jumped, with the Sep. 30 Lecap near a 75.7% effective annual rate, as authorities absorbed roughly 1 trillion pesos and pushed about 6 trillion pesos of maturities into 2026.
• Central bank director Federico Furiase said very short‑term rates are transitory and would normalize only after a La Libertad Avanza win on Oct. 26.
• Analysts highlighted frail confidence and persistent dollar demand; Ricardo Arriazu argued the band’s ceiling can be defended and said carry trades would be attractive if trust improves.
• Morgan Stanley warned investors about policy confusion and recommended caution until the planned post‑election adjustment is clearer, as intra‑team strains surfaced with José Luis Daza’s critique of Macri‑era policy.