After a key day for global markets in which the US Federal Reserve confirmed a three-step rate reduction this year, the Argentine bonds reopened in green, after closing with jumps of up to 5% in the previous one.
This Thursday the country’s risk drops even further after exceeding the 1,5000 point threshold, which It has not occurred since September 2021 and stands at 1,472 units.
In the premarket, Argentine dollar bonds gained 1.7%. On Wednesday, the most notable rise came from medium-term global stocks, such as Global 2029 and Global 2030, and Their price exceeds 50 US dollars, a threshold that Argentine bonds had failed to exceed since they were listed 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 50% compared to the result of the run-off 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%.
The Fed’s decision to leave rates unchanged this time and to move towards a scenario of gradual reduction in the cost of money in the United States has given a further boost to local debt. “In light of this news, the S&P500 hit new all-time highs at 5200, while the Nasdaq rose 1.2%, two-year rates fell 7 basis points to 4.6% and the dollar fell “, Aurum Values reported.
This Thursday, global stock markets continue to celebrate and Argentine stocks listed on Wall Street open mostly in green, with Banco Macro in the lead. This pushes Merval: the main indicator of the Buenos Aires Stock Exchange advances by more than 2% and when measured in dollars stands at $1,091, which represents an improvement of more than 15% this month alone.
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.
NE/SN
Source: Clarin
