Job growth in the United States was higher than expected in April, highlighting the strong fundamentals of the economy despite the contraction of the Gross Domestic Product in the first quarter.
Argentina suffers from high inflation that in April would show a floor of at least 5.5%, according to private calculations, after the unexpected 6.7% in March and the historic 16.1% in the first quarter of 2022.
“Inflation is a problem with monetary roots, specifically linked to the financing of the fiscal deficit; therefore, it must be faced with clear and lasting rules of the game, within the framework of responsible and affordable public spending. For this, it is necessary to commitment of all political, economic and social actors in the country,” the Buenos Aires Stock Exchange (BCBA) said in a statement.
Bonds and country risk
On Thursday, meanwhile, dollar-denominated sovereign bonds also failed to escape global volatility, despite an optimistic opening. Drops of up to 2.6% were recorded, such as that of Bonar 2041 (local law). Among the global ones (foreign law), the one that expires in 2035 lost 2.2%.
“In the last 30 days, the falls averaged 3% in foreign law bonds and 4% in local law bonds, while so far this year the falls reached 6% and 10%, respectively. In this way, bonds under foreign law were more resilient and the price difference between the two groups reached an average of 3.2 dollars”, reported from Puente.
In this framework, the Argentine country risk prepared by the JP Morgan bank rose 1.4% to 1,788 units.
For their part, bonds in pesos extended their upward rally in most of their exponents, and climbed up to 2.7%. In contrast, lecers fell 0.3% on average. Next week, INDEC will announce the price hike for April, which, according to private analysts, will have a floor of 5.5%, after the abrupt jump of 6.7% in March and an accumulated 16.1% in the first quarter, the biggest rise in 30 years.
Meanwhile, dollar-linked sovereign debt continued to sell, losing an average of 0.5%, with TV23 being the hardest hit (-0.6%).
Source: Ambito
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