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First reactions to Sergio Massa's announcements: dollar bonds plummet

2023-03-22T14:04:25.226Z


On a key day for global markets because the Fed will decide on rates, dollar titles fall to 5.4%. Announcements about new measures to control the exchange rate gap and obtain financing in pesos through the sale of public securities had a negative impact on the bond market , which before the official opening plummeted up to 5% . The official initiative, which was announced on Tuesday night, has not yet been embodied in a Decree , so investors are trying to understand the measure and react with


Announcements about new measures to control the exchange rate gap and obtain financing in pesos through the sale of public securities

had a negative impact on the bond market

, which before the official opening

plummeted up to 5%

.

The official initiative, which was announced on Tuesday night,

has not yet been embodied in a Decree

, so investors are trying to understand the measure and

react with sales.

On a key day for global markets, in which the Federal Reserve's decision on interest rates in the United States will be known, dollar bonds began the wheel with

deep falls.

The 2046 Global Bond sank 5.4%, while the one that matures in 2041 fell 5.1%.

A market operator told

Clarín

that the falls in prices are due to the

doubts generated by the

contingency plan that the Government would present this Wednesday.

According to official sources, the idea is that the entities that make up the National Public Sector, especially the Anses Sustainability Guarantee Fund,

should sell their positions in sovereign bonds in dollars

(local legislation) in exchange for Treasury bonds in pesos for up to 70% of the effective value generated.

On the other hand, it will also be forced to exchange the holding of Globales (foreign legislation) for titles in pesos.

The fall in the prices of dollarized bonds makes the

country risk

worsen 0.5% at the opening of the market and return to 2,347 points.

"It is

a bad operation

, it is not what the economy needs at this moment and it speaks of the

lack of direction

that the leadership has," said another actor from the local market, who stated that in terms of control of the exchange rate gap and the pressure inflationary, the results of this measure will be "innocuous".

In a report for their clients, Delphos analysts pointed out: "The loose end (or still unknown) of this operation that the Ministry of Economy would be presenting lies in achieving a genuine or regulatory

demand for the Bonares

in order to avoid a collapse of its parities to abort the operation even before launching".

"It is about a

'disguised' issue of new bonds

(even though they are 'old') to obtain new financing for the Treasury. If the buyers of Bonares arise from previous sales of bonds in pesos that the Central Bank finally ends up buying in the market secondary, then it will be indirectly the Central that finances the Treasury."

note in development

look also

Sergio Massa met with representatives of banks and investment funds in the midst of the fall in reserves and the rise of the dollar

Public sector bond swap: keys to understanding what Sergio Massa is looking for and what the cons are

Source: clarin

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