Economy Seeks to Renew 8.13 Trillion Pesos in Debt Before 2027 Elections

The Ministry of Economy will go out this Friday to renew debt maturities in pesos totaling 8.13 trillion pesos. The Secretary of Finance announced the selected instruments for the operation, which include LECAP, TAMAR, CER, and dollar-linked securities. Daniel Chodos, head of Research at Dhalmore Capital, highlighted that the menu focuses on relatively short instruments, which could facilitate the largest possible rollover at the lowest cost. Most of the maturities offered are concentrated in 2027, suggesting that the Treasury aims to avoid validating the rates for the 2028 tranche. In fixed rate, only the LECAP S13N6, maturing in November, is offered. The absence of longer alternatives could indicate that the Treasury is unwilling to validate rates close to 2.2% for the 2027 tranche. In CER, the X29E7 is reopened, which is considered expensive compared to the rest of the curve. In TAMAR, two short instruments are offered that could capture the rollover of the dual TTS26. In the segment of dollar-linked securities, the Treasury offers four alternatives to meet the growing demand for currency coverage.

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