Argentina's Treasury Releases Pesos After Rolling Over Less Than All Maturing Debt

Argentina's Treasury did not refinance all of the debt that came due at its first auction of November and left pesos in the market, Clarín reported (in Spanish). It described the result as a signal to the market. The two sides measure the result differently. The Economy Ministry reported a rollover of 103.07%, a calculation that leaves out maturities of two inflation-linked bonds, the TX26 and TX28. The Finance Secretariat received bids of 11.6 trillion pesos and accepted 8.87 trillion. Counting the two bonds, the brokerage Puente put the effective rollover at about 84%, Infobae reported. With roughly 10.5 trillion pesos maturing, about 1.7 trillion pesos return to the economy. Demand concentrated in instruments linked to the TAMAR wholesale deposit rate.

The government also delayed asset sales. It extended hydroelectric concessions that were due to expire in December until April 30, 2027, which postpones new privatizations. Clarín estimated that sales of dams in Chubut, Mendoza, Santiago del Estero and Salta could raise about $200 million.

The real economy is moving in two directions. Ámbito reported that construction is recovering because of public works spending, mainly road maintenance, while private construction keeps falling month after month because building costs per square meter remain high in dollar terms. The outlet expects asphalt work to accelerate next year ahead of the elections.