Economy

The Buenos Aires bag added its fifth climb to the thread this Wednesday due to hedging, with the market digesting the new CCL and MEP dollar regulations that he imposed on Tuesday the National Securities Commission (CNV). Meanwhile, on Wall Street, a stock rose nearly 6%.

Thus, the leading BYMA S&P Merval index improved 0.3%, to a provisional close of 341,669.30 pointsfollowing taking intraday profits and accumulating a string of five consecutive sessions breaking all-time highs. The Merval marked a record level of 349,024.53 units the day before.

Thus, in the leading panel, the main increases were for Transportadora de Gas del Sur (+2.2%), Grupo Financiero Galicia (+2%) and Edenor (+1.6%).

After the market closed, on Tuesday, the CNV announced that it will oblige to keep the funds immobilized for at least 15 days from the moment of acquisition of dollars in the alternative places (CCL – MEP) to acquire other dollarized assets.

“The (local) doubts with new obstacles to access financial dollars and uncertainty regarding the future of the US economy are the trigger to start taking profits”said a stock trader.

On the other hand, in the external squares The negotiations of the United States Government on the debt ceiling, which were prolonged without solution, weighed heavily, fueling the general malaise in the markets. In this context, the three main indices on Wall Street fell to 0.8%.

For their part, the ADRs They ended with a majority of increases. Bioceres stood out with 5.9%. The rise occurs in line with the company’s news regarding HB4 Wheat: it added a new marketing channel and announced that it plans to double the planted area. The other main hikes were for: Transportadora de a Gas del Sur (+2.7%), and Grupo Financiero Galicia (+2.6%).

Bonds and country risk

In the fixed income segment, dollar-denominated bonds closed mixed. led the casualties the Global 2046 (-3.7%), and the Bonar 2029 (-2.3%). The increases, meanwhile, were for Global 2038 (+2.2%), and Global 2041 (+1.3%).

Thus, the country risk measured by JP Morgan rose 0.04% to 2,584 basis points.

The U.S. Treasury Department is asking government departments whether they can defer payments that are due soon, even as negotiations on the U.S. debt ceiling have stalled. According to sources,To postpone the so-called “X Day” when cash reserves are depleted, U.S. Treasury Department officials have asked other federal agencies for flexibility in payments due by early June.
(Recap:U.S. Debt Default Bomb Disposal” Biden McCarthy 5/22 to restart cap negotiations）
(background supplement:6/1 U.S. debt default day: a great opportunity for Bitcoin?）

beautifulAfter China hit the US$31.4 trillion debt ceiling in January this year, the US Treasury Department was forced to use special measures to prevent debt default. However, U.S. Treasury Secretary Yellen recently warned that the ability of the U.S. Treasury Department to use special accounting methods to maintain the debt ceiling may be exhausted as soon as early June.

On the issue of raising the U.S. debt ceiling, U.S. President Joe Biden (Joe Biden) and Republican House Speaker Kevin McCarthy (Kevin McCarthy) restarted negotiations on the 22nd. No agreement can be reached and there is a stalemate.

Further reading:U.S. treasury cash bottoms out in 7 days” Biden and McCarthy’s debt negotiations “Joe can’t agree”, Bitcoin is holding on to 27,000 mg

Treasury asks government agencies if they can defer payments

While U.S. debt ceiling talks linger, Washington Post cites sourcesreportthe U.S. Treasury Department is asking whether the country’s government agencies can defer payments that are due soon.

According to sources,To postpone the so-called “X Day” when cash reserves are depleted, U.S. Treasury Department officials have asked other federal agencies for flexibility in payments due by early June.

The U.S. Treasury Department said on Tuesday it was asking other federal agencies for more clarity and improved communication on projected receipts and payments in the coming days in order to more accurately predict when the government will have cash in the absence of an increase in the federal debt limit shortage.

A Treasury Department spokesman said the department is not asking federal agencies to defer payments at this time, but is asking for increased communication regarding future payments. He explained:

To make accurate forecasts around the debt ceiling, the Treasury must have up-to-date information on the amount and timing of agency payments. As it has previously done with the debt ceiling, the Treasury Department will continue to communicate regularly with all levels of the federal government regarding its planned spending.

The real X date may be 6/8

U.S. Treasury Secretary Yellen also sent a letter to Congress for the third time on Monday, saying that June 1 will be the “deadline” for the U.S. to raise the debt ceiling. Still, some Wall Street forecasters say the real X Day — the day the government ends up missing payments — might be June 8 or 9.

Marc Goldwein, senior policy director at the Committee on a Federal Budget (CRFB), said:

They can go even further if they get to June 15th, when a huge amount of quarterly tax dollars will hit the coffers and government officials are looking for ways to hoard cash to buy a few more days.

As for what happens if it is really violated? According to a study by the White House Council of Economic Advisers, if the United States falls into a debt default, it may cause an economic recession as severe as the Great Depression, causing 8 million Americans to lose their jobs and the stock market to plummet by regarding 45%.

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