Stocks and bonds fall due to profit taking after approval of the IMF agreement

Stocks and bonds fall due to profit taking after approval of the IMF agreement

The new credit with the IMF was approved by the Senate with 56 positive votes, 13 negative and three abstentions, for which it became a Law since it had the approval of the lower house.

“The IMF board is expected to deal with it next Monday and give it the final touch,” they said from StoneX.

The understanding establishes a grace period of four and a half years, and extends disbursement payments to 10 years, so that the country will start paying off the debt in 2026 and end in 2034, in addition to establishing growth goals, lowering inflation, strengthening the reserves of the Central Bank (BCRA) and quarterly reviews of the accounts.

After the jump in inflation in February, President Alberto Fernández will announce this Friday a “war against inflation” amid speculation about an increase in farm withholdings and food subsidies. Inflation shot up 4.7% last month and accumulates a year-on-year rise of 52.3%.

“Domestic assets are looking to recover ground after recent weakness, especially taking advantage of the upturns offered by the volatile dynamics of the external context,” commented an operator.

The external squares showed this Friday greater risk aversion after a deadlock in talks between Russia and Ukraine to seek to end a war that is causing problems in the world economy.

Bonds and country risk

For its part, sovereign bonds in dollars show most declines, mainly those issued under local law, which fell by up to 1.2%.

Thus, the country risk Argentinian, prepared by the bank JP.Morgan, rebounded 1% (17 points) to 1,786 basis points, compared to a historical maximum level of 1,991 units.

“The titles had already been incorporating a ‘no break’ scenario with the IMF in their prices in the last rounds,” they said from Portfolio Personal Inversiones (PPI).

Source: Ambito

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