The Whirlwind of Pesos

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The Whirlwind of Pesos

Second week
June 2022

And one day it happened. The bond market in pesos slumped and investors flocked out of CER bonds to stay in liquidity funds and fixed terms. The catastrophe was such that some titles that yielded negatively with respect to inflation began to pay 10 points above the IPC. This changed the physiognomy of the local market which, although never very quiet, had a more or less well-known dynamic. Now the government will have to shuffle again to have a decent auction on Tuesday and especially in the last of the month since it must raise some 600,000 million pesos to meet the maturities. For this first auction they go with all short titles. It will be important to see what interest rates they validate.