A native of Rosario, Bayo attended a military training institution and took part in the Battle of Cepeda with the rank of captain.

As a politician, he was Rosario's Political Chief (comparable to a non-elected mayor), a senator, and governor of the province (with Juan Manuel Zavalla as his vice-governor).

In response, Governor Bayo ordered the liquidation of the Rosario branch of the Bank of London as harmful to the interests of the province, and arrested its manager.

The conflict was solved in September 1876, after six months, with the mediation of the Argentine chancellor Bernardo de Irigoyen.

In the ultimate outcome, the Bank of London accepted the conditions imposed by Santa Fe's government.