The dollar bonds They rose more than 3%, the JP Morgan indicator that measures the excess cost of debt in relation to United States treasury bonds. It fell 6.7% on the day, to 966 basis points, a value that has not been seen since the PASO elections in August 2019, when Alberto Fernández defeated Mauricio Macri.
Among bonds, the Global 35 rose 4% and the AL30 3.2%. So far this year, these dollar securities under New York legislation have risen between 60 and 78%.
So far in October, the drop in country risk is 25%, while throughout the year it collapsed 49.3%.
Argentine shares listed on Wall Street rose up to 8% for BBVA, 6.8% for Loma Negra and 6.39% for Telecom.
In Buenos Aires the Merval advanced 1.2% on the day and has already climbed 101.4% in the year in pesos and 68.5% in dollars.
The reduction of the country risk below 1,000 basis points was expected by analysts for several days, based on the upward movement of bonds and the news that shows an improvement in the country’s payment capacity.
Operators consider that different factors made it possible for Argentine assets to take off.
Progress regarding a REPO with some financial institutions and financing from multilateral organizations stands out, which would ensure sovereign debt payments for next year.
According to some analysts, it could indicate that the release of capital controls would be a little closer.
“In addition, Argentina was not included in the FATF gray list, which would affect the country’s reputation and access to international financing.”
With bonds and stocks on the rise and stable parallel dollars, the Wall Street party continues, focusing once again on Argentina despite the setbacks of recent years.
Specialists explained that at no time was it thought that Argentina would make the fiscal adjustment that Javier Milei made.
The reduction in country risk occurs at a time when the Central Bank has purchased almost US$ 1.1 billion so far this month.
Calm remained among financial dollars, which fell 1.3%, taking the MEP to $1,141.8 and cash with liquid $1,163.5. On the other hand, the blue dollar rose ten pesos, to $1,225.
A year ago, a few days after the first round of elections, the country risk reached 2,531 basis points.
In 2020, the JP Morgan indicator peaked at 4,300 points in March amid the paralysis of the world economy due to the pandemic.
From there it fell to 1,088 points after the debt exchange that was carried out in September of that year, but in a few days it returned to above 1,200 points.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
