Argentina’s government cleared a pivotal market test on Wednesday, rolling over about ARS 9.1 trillion—roughly 61%—of the ARS 15 trillion (US$11.3 billion) in local-currency debt maturing this week. The Treasury accepted bids across seven peso-denominated bonds and one dollar-linked security, paying effective monthly yields of 4.2% to 4.5% on the shortest Lecap bills due in September. The tender followed weeks of peso volatility and surging short-term funding costs. To shore up demand, the central bank opened an after-hours repo window that lets banks pledge government securities for cash at zero interest, a tool officials said would help institutions meet tighter reserve requirements without injecting additional pesos into the economy. Hours after the auction, the national statistics agency Indec reported that consumer prices rose 1.9% in July, up from 1.6% in June but broadly in line with private forecasts. The increase lifted cumulative inflation to 17.3% for 2025 and cut the annual rate to 36.6%, its lowest level since December 2020 despite July’s currency-driven pressures. Economists cautioned that the peso’s recent slide could feed through to prices in August, while higher funding costs add strain to corporate balance sheets. Still, Wednesday’s partial rollover eases near-term liquidity risks for President Javier Milei’s administration as it seeks to stabilize the economy ahead of mid-term elections.