The national government successfully passed one of the most demanding financial exams since the beginning of the Milei administration, renewing 96.48% of the massive peso debt maturity it faced this week. Although lower than those achieved in the first post-election auction, the longer maturities helped to ease some of the concentration of short-term commitments. In the lead-up, the Treasury deployed a key technical maneuver: it exchanged 1.3 trillion pesos worth of bonds that the central bank had acquired to support prices during the pre-election months. Even so, it is evaluated that the Treasury managed to expand the use of the BONCAP 2027 and give more volume to the long end of the fixed-rate curve, an element that the administration has been trying to rebuild since last year's peso debt crisis. Although the immediate challenge has been overcome, the continuity of fiscal and monetary conditions will be crucial to sustain public sector financing without resorting to a greater expansion of the monetary base or deteriorating the stability achieved in recent months. In this auction, ten instruments (six of them reopenings) were offered with maturities ranging from 77 to 518 days.
