At the local level, forecasts of inflation that could exceed 6% in March, according to analysts, and tensions in the government coalition, overshadowed a recent agreement with the International Monetary Fund (IMF) in which some u $s44,000 million.
“The leading panel reached four-month highs measured in dollars, exceeding 480 points and helped by the fall in the “cash with settlement” (quotation of the dollar in the alternative market)“, said the clearing and settlement agent Neix.
The exchange rate pressures in the Argentine market decreased after the agreement with the IMF that allowed the central bank (BCRA) to increase its reserves by some 6,000 million dollars.
Simultaneously, Argentine country risk rises 1% to 1,727 basis pointsagainst his record of 1,991 units scored in early March.
On Tuesday, dollar-denominated bonds gained up to more than 2%, led by the Global 2046 (+2.5%); Global 2038 (+2.4%); and the Bonar 2030 (+1.9%).
The weighted average price of globals was above US$34 for the first time since February 22 and appears to have consolidated a new floor.
What is the market looking at? “Argentina at times behaves like its peers or even shows a better performance with respect to the region’s bonds. LATAM ten-year bonds cut between -2/-5 bps in their yields. Local drivers are few. After the negotiations with the IMF and the Paris Club, there are plenty of doubts about the fulfillment of the goals set for Argentina in a context of high inflationary pressure,” they commented in the market.
For their part, bonds in dollar-linked pesos showed good demand, in step with what is happening in the futures market, and rose 0.8% on average, with T2V2 standing out, which already yields -2.45% TNA .
Finally, the debt adjusted for inflation operated as a borrower in the short section, which gained 0.3%, while it was heavier in the middle section, which practically ended changes “The CER curve shows negative real rates throughout the short section, just getting positive from TX24 onwards”, they remarked from the SBS Group.
Source: Ambito
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