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Fed’s Divided Pause Sends U.S. Yields Higher as Argentina Debuts Dollar‑Linked TAMAR and Rolls Over Peso Debt

The Fed's 9‑3 decision and reduced guidance pushed long‑term Treasury yields up and helped lift Argentina's borrowing costs even as Buenos Aires sold a new dual peso bond and achieved a large rollover.

La Fed mantiene sin cambios las tasas de interés entre 3,5% y 3,75%. (Foto: EFE)
Con un dólar blue en su pico anual, el dólar oficial volvió a caer este miércoles 29 de julio.
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Overview

  • The Federal Reserve left its policy rate at 3.50%–3.75% in a 9‑3 vote on Wednesday, with three officials voting to raise rates and Chair Kevin Warsh offering less explicit forward guidance.
  • Markets reacted by pushing long‑term U.S. Treasury yields to multi‑year highs and nudging equities lower, increasing the odds traders assign to a September rate hike.
  • Argentina’s Treasury held a July 29 auction that placed AR$12.21 trillion of peso instruments, achieved a c.144.5% rollover of maturing paper, and sold US$309 million of the AO29 dollar bond.
  • The new TAMAR/Dólar Linked bond, which pays the higher of a wholesale peso deposit rate (TAMAR) or a move in the official dollar, became the most in‑demand peso instrument at the sale.
  • Despite the successful rollover and BCRA purchases of foreign currency, Argentina’s sovereign risk rose into the mid‑440s basis points and domestic assets and the informal 'blue' dollar moved higher, showing rising financing costs and pressure on local finances.