Argentina's Ministry of Economy will hold an auction on Wednesday to renew maturities worth approximately 8.3 trillion pesos, while continuing to issue dollar-denominated bonds to meet debt obligations. According to Noticias Argentinas agency, the offer reception is composed of letters and capitalizable bonds in pesos and linked to the dollar. As in previous cases, the Secretariat of Finance will continue to issue AO27 and AO28 bonds, both in US currency, to raise up to US$150 million with a second, expandable tranche of US$100 million. Both will serve to meet mid-year debt maturities totaling US$4.5 billion. This configuration suggests that the Treasury is again taking advantage of current low real rates in the medium and long segments of the curve to extend duration, replicating a strategy that has already shown favorable results in previous tenders.
