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Argentina Treasury Launches Debt Auction to Roll Over ARS 7.7 Trillion and Extend Terms

Investors are watching for stronger demand given Treasury cash at the central bank is at its lowest since April.

Overview

  • The sale led by new finance secretary Alejandro Lew offers a broad menu in pesos, including fixed-rate, CER, dólar-linked and TAMAR instruments.
  • The shortest paper on offer is 109 days, and for the first time this year the Treasury is not tendering notes maturing in 2025 to push duration out to 2026–2027.
  • Treasury deposits at the BCRA stand near ARS 5.2 trillion after the prior auction injected liquidity into the market and left a low rollover.
  • Market desks expect a rollover closer to 100% to stabilize balances, a result that analysts say could require paying a rate premium versus secondary-market yields.
  • Consultancies warn remonetization has limits without FX reserve gains or regulatory changes, with roughly ARS 37 trillion in local-currency maturities coming over the next two months.