After Monday’s US vacation, Argentine bonds resumed trading on Wall Street with drops that reach up to 11% in the premarket, transactions that are carried out before the formal start of the quotations.

Dollar-denominated sovereign bonds fell to $ 2.50 at the rate between US $ 21 and US $ 25 US $ 100 each, one day after Silvina Batakis took office as Economy Minister following the abrupt departure of Martín Guzmán.

Benchmark dollar bonds maturing in 2030 fell $ 2.5 to 21.91 cents on the dollar. Those maturing in 2035 produce between US $ 2 and US $ 20.4.

The US bond market it was closed on Mondays for Independence Day. And there was expectation of how she would react.

As a prelude to what could happen this Tuesday, Monday, two days after Guzmán’s resignation, the local market lost up to 3%, even though it closed below. And the blue dollar hit $ 280, which represented an increase of over 40 pesos, and financial dollars like the cash dollar, $ 282.62, and the MEP at $ 270.52.

Despite the collapse, which leaves bonds among the cheapest in the market, analysts are advising their clients to wait. BancTrust has suggested staying “on the sidelines” when it comes to Argentina’s debt, saying this Prices are likely to drop further before rebounding.

“At current levels, we think bonds are cheap, but It is not yet clear when to expect a rebound in valuations “head of research and strategy Ramiro Blázquez and senior economist Juan Martín Sola wrote in a report.

“Prices will fall before a rally is seentherefore it is not yet the right time to increase exposure to Argentine debt, “they indicated, according to the Bloomberg agency.

However, the company remains bullish on long-term debt given the prospects for regime change and political support for reforms. “We expect a negative impact on spreads and a further reversal of the yield curve, with rising short-term yields outperforming long-term ones.”

development note