The Economy Ministry obtained AR$500 billion in an auction where it placed an inflation-adjusted peso bond maturing on February 14, 2025. These BONCER bonds have a 4.2% surcharge and an annual nominal rate of -21.7%. Investors placed 471 purchase orders for more than AR$1.5 trillion of the BONCER’s nominal value — three times what the Treasury accepted, AR$500 billion. Last week, the Central Bank board decided that the annual benchmark interest rate would be 100% and determined that the minimum annual interest rate for fixed-term deposits would be 110%, a figure well below the inflation rate. However, he added that CER bonds go up to a point and have become very negative yields in real terms.

Source: Bueno Aires Herald December 28, 2023 16:43 UTC