CER bonds rise up to 4.6% after lowering BCRA rates

CER bonds rise up to 4.6% after lowering BCRA rates
CER bonds rise up to 4.6% after lowering BCRA rates

Bonds in inflation-adjusted pesos (CER) rise up to 5% this Thursday, after the decision of the Central Bank (BCRA) to lower the interest rate on Passive Repos again. The S&P Merval also operates higher at the beginning of this new month.

“The drop in rates causes Lecaps and short CERs to compress rates,” he told Ambit the director of Delphos Investment, Leonardo Chialva.

Meanwhile, Sovereign bonds in dollars operate unevenly and the country risk prepared by the JP.Morgan bank remains stable at 1,227 basis points.

For its part, the S&P Merval advances 0.5%, to 1,330,833 units, after accumulating an increase of 9.1% in April. Argentine shares listed on Wall Street jump up to 2.9%; The increases are led by Loma Negra, Mercado Libre.

The day featured the surprising decision of the Central Bank (BCRA) to lower its reference rate again by 10 points, to 50% annual nominalas a week ago it had increased up to 60% due to the improvement in financial indicators.

After being approved on Tuesday in a marathon session the “Bases Law” Thanks to the support of legislators allied to the Government, which has few representatives in Parliament, the deputies also approved the tax reform proposed by Milei, who took power in December. Now the project must go through tough negotiations in the Senate.

“Being able to move forward with the reforms and the fiscal package is important in order to consolidate the sustainability of the fiscal surplus, not only because of its dynamics but also because of the political consensus that it would imply in seeking to extend the high social approval and also aspire to soon be able to reactivation of economic activity can be achieved,” said economist Gustavo Ber.

Milei came to the presidency with the promise of deregulating the economy, defeating inflation and channeling the macro with a sharp cut in fiscal spending, in addition to getting out of the exchange rate trap.

“The idea is that at some point during the year we are going to open it” to the exchange market, Milei said in a recent radio interview, but to do so “we need to do a few things,” he commented: “one is to finish solving the problem of trapped dividends, another to end remunerated liabilities”.

This is caused by the decrease in inflation and rate cuts “and that will also allow the BCRA to leave its positions and go to the Treasury. With which, let’s say, we continue to clean up the Central Bank’s balance sheet,” he added.

On the external financial level, the United States Federal Reserve (Fed) held rates steady on Wednesday and signaled that it remains leaning toward an eventual reduction in borrowing costs, but warned of disappointing inflation readings and suggested possible stagnation in the move toward greater balance in the economy.

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