Dollar bond rally: they are heading towards their fourth weekly rise in a row and the country risk is approaching 1,250 points

The leading index, S&P Mervalfalls 0.1% until 1,753,655.49 units. However, due to the new withdrawal of the CCL, measured in dollars the benchmark grows 0.6% and reaches eight-day highs.

Transportadora de Gas del Sur is one of the firms that leads the gains in both the Buenos Aires and New York stock markets, with increases of around 2.5% in its papers. Likewise, Irsa’s ADRs increase 3.2%. Central port leads the losses, with losses of more than 2% in both places.

The better investment climate on Wall Street was due to a report from the Department of Labor showed that job growth accelerated in September and that the unemployment rate fell to 4.1%which further diminished the need for the Federal Reserve hold big interest rate cuts at their two remaining meetings this year.

In that context, traders raised their bets on a 25 basis point cut at the Fed’s November meeting to 94.5%compared to more than 71% before the data was known, according to the CME Group’s FedWatch tool.

Bonds and country risk

In the fixed income segment, the securities that rose the most were those under local legislation with longer terms: Bonar 2038 rose 1.4%, while Bonar 2041 rose by 1.3%. Meanwhile, the country risk drops 0.6% to 1,258 basis pointsas measured by JP Morgan.

The previous day marked a good performance for Argentine assets. “Positive wheel for sovereign debt, operating all day in green and closing with increases of 0.25% average abroad. Local increases vs D in the entire section of the curve are affected by the rise in the exchange”, pointed out Nicholas CappellaSales Trader of Grupo IEB.

For his part, the Minister of Economy, Luis Caputoclarified that he would not go out to capture dollars from debt laundering but that he hopes that they will finance the private sector.