BUENOS AIRES (Reuters) - Argentine market traders are betting the central bank will cut its benchmark interest rate again this week given the slowdown in monthly inflation and a planned Treasury debt auction, two money market sources and a brokerage told Reuters on Tuesday.

The two Buenos Aires-based traders at major banks said the central bank would likely cut the overnight rate by five to 10 percentage points, which would follow three similar cuts since April when it dropped to 50% at the start of this month.

Argentina's authorities are expected to unveil inflation figures later on Tuesday, which are expected to show monthly price rises dipping back into single digits for the first time in six months, despite the annual rate remaining near 300%.

"Everything is set for the (interest) rate to continue falling this week in view of Thursday's bill tender," said one trader, who asked not to be named as they were not approved to speak publicly on the matter.

The second trader source said, "everything indicates that the low rate is about to fall."

The central bank directors normally convene each week on Thursday, which this week will coincide with a Treasury bill auction. Lower benchmark rates could make those bills more attractive for investors.

The central bank did not respond to a request for comment.

"Peso debt is rising in the expectation of another rate cut," the local Cohen brokerage said in response to question from Reuters.

Argentina's government, under libertarian President Javier Milei, has made a major swerve in monetary policy since taking office in December, repeatedly cutting the benchmark interest rate as it has grown more bullish about inflation.

Monthly inflation has been declining since a peak over 25% in December after Milei devalued the peso currency sharply in a bid to undo serious distortions caused by years of capital controls that have strictly limited access to dollars.

(Reporting by Jorge Otaola; Editing by Adam Jourdan and Josie Kao)

By Jorge Otaola