Argentina: The finance ministry has announced that it has successfully placed US$2.09bn in short-term treasury bonds (Letes) in the local financial market. According to a ministerial statement the bonds were issued in separate tranches denominated in both US dollars and Argentine pesos, with the dollar-denominated bonds offering an annual yield of 5.25% and the peso-denominated bonds offering an annual yield of 39.7%-42.14%. The successful issue comes as there are still major concerns about the strength of the Argentine peso, which suffered a run against it from May-June, and was taken by the ministry as a sign that there still is confidence in Argentina’s economy. The transaction should also help to allay concerns over whether the Argentine government still has the capacity to raise funds to finance government spending.
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