On a key day for global markets and with investors’ eyes focused on statements by the chairman of the United States Federal Reserve on the tariff policy of that country, the Argentine bonds lead a new day of increases.
Since the markets opened, government bonds in dollars have risen up to 4% and the the country risk exceeds the threshold of 1,500 pointsto be placed around 1,496 units, something similar This hasn’t happened since September 2021.
The most notable increase is in medium-term global headlines, such as Global 2029 and Global 2030, and Their prices exceed 50 US dollars, something that This hadn’t happened since they went public after the debt swap that the former Minister of Economy had to face Martin Guzman in August 2020.
On average, these titles increase by almost 48% compared to the result of the runoff last November. Juan Manuel Franco, of the SBS group, explained: “The strong general rise in the Globales is mainly due to the economic direction announced by the new government, with particular attention consolidation of public accounts and the intention to normalize the multiple imbalances of the Argentine macroeconomy.”
The economist added that a better perception of the State’s ability to pay Argentina may have favored these increases, as in the short term these bonds are waiting for the corresponding coupon payment: The GD30 coupon is expected to be paid in July this year; while in January 2025 this bonus and the GD 2029 will be paid.
Even if underlying doubts persist, the improvement in the price of these securities is an indicator of greater confidence on the part of the markets. “The foundation lies in a constructive vision regarding the long-term paradigm shift in Argentina,” they indicated in the PPI.
This is in turn accompanied by a general good mood. In the PPI they underlined that in the previous one “we had another day with favorable wind from international markets. In this sense, the emerging bond universe had a great run on Tuesday, which contributes to the good mood of Argentina’s dollar sovereign debt. The EMB ETF, which is made up of emerging market bonds, advanced 0.5% while Argentine-like debt securities did the same as much as 0.8%.
Improving bonuses goes hand in hand with a greater strength than the Merval index. This Wednesday, Argentine stocks on Wall Street are mostly up, with Edenor in the lead, and the main index of the Buenos Aires Stock Exchange advances to $1,069.
With improvements of up to 30% in pesos this month alone, banks are the ones leading the recovery in Argentine stocks and the Merval index returns to levels I haven’t seen since 2019.
At Delphos they underlined that the rise in the Buenos Aires stock exchange can help Argentine debt: “We believe that at the levels Merval is currently at, country risk should continue to compress.
Source: Clarin
