Thus the things, the dollar-denominated bonds fell to more than 6%, with casualties led by Bonar 2035 (-6.2%); Global 2046 (-5.9%); the Bonar 2041 (-5.1%); and Global 2041 (-4.1%)in a general offer place.
Indeed, the country risk measured by the JP. Morgan bank rose 59 units to 2,029 points, after setting a historical intraday record level of 2,033 units.
In the case of the CER debt, for its part, the falls were similar, and were added to those suffered the day before, which had reached double digits. The most salient landslides were recorded TC23 (-6.3%); the PAP0 (-5.7%); and the PARP (-4.1%), despite the attempt of official organizations (BCRA and FGS of ANSES) to stop the bleeding. In just six days in June, accumulate a collapse of up to 23%.
After Wednesday’s settlement, these bonds fell sharply again due to new bailouts in the Mutual Funds for Investment (FCI), commented on the market. But also “stop-loss sales were added at many tables, and the drop also affected LEDES”, commented to Ambit Juan Manuel Anciaume, Sales and Trading Director of Criteria.
“Around noon, the presence of a large-volume buyer was detected in a short bond used as a reference, the T2X2, which allowed the market to disarm large volumes of that title. After a few hours, the demand for this buyer would have spread to other titles (TX23, T2X3, TX24)”Anciaume added.
Despite the very strong demand estimated at about 10 times the volume of the last wheels, all bonds ended with price declines compared to the previous day and once again expanding yields sharply. For example, T2X2 came to yield 20% on CER at its worst moment of the day, to close at CER+10%, which means about 500 basis points more than the previous day.
The strongest falls at the beginning of the month were suffered by the longest CER bonds, before “fears of a redefinition of the debt in pesos after the 2023 presidential elections, but also in the face of doubts about the government’s ability to ‘roll’ the next maturities”, indicated from Research for Traders.
The endorsement of the International Monetary Fund (IMF) for the country’s macroeconomic policy after a review of a recent credit agreement did not even help mitigate the generalized fall in Argentine assets, although He acknowledged that he will review the quarterly goals to reflect the impact of the war in Ukraine, although he will not modify the annual goals.
This suggests “that we could see new measures in the near future in order to meet the established goals,” they commented from the SBS group. “We believe that the latter occurs considering the low amount of reserves that the Central Bank was able to accumulate, which distances it from meeting the goal for the second quarter,” they added.
In March, the Government and the IMF closed a credit program for some 44,000 million dollars in which the country promised to increase BCRA reserves, lower the inflation rate and cut subsidies, among other points.
In this context, the BCRA’s reference rate could increase by around 200 basis points next week in response to the rise in retail prices, revealed a Reuters poll.
S&P Merval and ADRs
In the Buenos Aires stock market, meanwhile, the leading stock reference S&P Merval of BYMA lost 1.2%, to 88,869.78 units, with which it accumulates a drop of 3.7% so far this week, to the rhythm of a general fall in global markets in the face of growing inflationary pressures that envision general increases in interest rates.
Source: Ambito
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