Argentina launches AO29 bond auction to raise up to $2 bn in foreign currency

Argentina's Treasury opened a new auction, designated AO29, on 10 July with an initial round and a second round later in the day. The auction offers a mix of instruments—including fixed‑rate peso bonds, a zero‑coupon inflation‑linked bond, a variable‑rate TAMAR bond, and dollar‑linked treasury letters—aiming to raise up to US$2 billion in the first round as part of a US$6 billion financing plan for 2026. Earlier auctions (AO27 and AO28) have already sold the allocated US$2 billion each.

The Argentine Banking Association (ADEBA) highlighted a related circular from the Ministry of Economy permitting the Province of Chaco to issue treasury letters in 2026 with a maximum spread of 700 basis points over the TAMAR rate. The circular also bars banks from using foreign‑currency deposits to subscribe to those letters, underscoring the government's broader effort to manage financing costs and foreign‑currency exposure.