Overview
- The U.S. Department of the Treasury announced Thursday it will at least double repurchases of 10‑ to 30‑year Treasuries from Sept. 9 through Nov. 4 to add liquidity to the long end of the market and cap long‑term yields.
- Markets reacted quickly with U.S. long yields falling from multi‑year highs, the dollar weakening and Wall Street posting gains, while the Mexican peso recovered to about 16.94–16.95 per dollar at the Banxico close.
- Argentine authorities have coordinated Banco Central and Treasury operations to hold a de facto wholesale dollar ceiling near $1,500, a strategy that has reduced FX purchases but pushed short‑term peso funding costs sharply higher.
- Short‑term Argentine rates jumped—one‑day caución averaged about 28.2% and interbank repo around 29.4%—and country risk rose to roughly 516–517 basis points as futures volumes and open interest surged, prompting scrutiny for possible official activity in derivatives.
- The Treasury action may offer temporary relief to global bond markets and give emerging currencies room to rally, but it also exposes an uneven split where Mexico benefits from dollar softness while Argentina pays higher domestic rates, weaker credit conditions and slower reserve accumulation.