Argentina sells $422 mln in Treasury notes, below expectations
In the days leading up to the sale, traders had said they expected the government to sell upwards of $1 billion in debt through the auction, which would have reduced downward pressure on the peso currency.
Argentina pledged to reduce the outstanding stock of Lebac notes as part of a $50 billion standby financing deal with the International Monetary Fund (IMF) last month. A run on the peso, which has lost more than 30 percent of its value this year, prompted the South American country to turn to the IMF.
The government had announced the auction earlier this week. It was initially scheduled to conclude on Tuesday, but the Ministry extended the deadline for receiving offers to Thursday “in response to the request from potential participants and in virtue of the short time frame.” (Reporting by Luc Cohen and Jorge Otaola; editing by Phil Berlowitz and Tom Brown).