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LatinNews Daily - 29 April 2021

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In brief: Argentina continues to rely on domestic debt market

* Argentina’s economy ministry has announced that it has successfully placed Ar$107.67bn (US$1.09bn) of new bonds on the domestic market. The ministry said that this was the third and final bond issue that it has scheduled for April as part of its ongoing efforts to raise funds to service the country’s large public debt and absorb excess pesos to reduce demand for US dollars in the currency market. According to a ministerial statement, the debt issue operation involved the issue of treasury and government bonds maturing in June and offering yields of between 36.84% and 37.34%; bonds maturing in October and offering yields of between 40.21% and 40.42%; and index-linked letters maturing in April 2022 that offer a yield of two percentage points above the national inflation rate. Although the operation was said to be positive, the total amount raised is lower than the Ar$123bn that the ministry had set as a target, raising the possibility that the government may have to return to the domestic debt market yet again.