Recall that the S&P Global agency on Monday raised its long-term local currency sovereign credit ratings for Argentina and affirmed its foreign currency notes, after considering the recent debt swap carried out by the Treasury “cured”.
In that framework, government bonds denominated in dollars rose strongly and showed increases of up to 4%, led by Global 2041, Global 2029 (3.7%) and Global 2035 (3.5%).
The retraction of the Argentine country risk also occurred at a time when the yields of long-term United States Treasury bonds fella day before the release of consumer prices, as the market anticipates that inflation is on a sustainable downward path and that the Fed will cut interest rates at the end of the year.
Economists polled by Reuters expect the CPI to slow to 6.5% in December from 7.1% in November, an estimate that is fueling a rebound in risk appetite in equity and fixed income markets.
The yield on the 10-year Treasury fell 4.1 basis points to 3.578%, while yields on all longer-term bonds and notes fell. Yields move inversely to price.
Yields on shorter-term debt, below two years, were slightly higher as futures assume the Federal Reserve will continue to raise rates and hit 5% in either February or late March, Steven said. Ricchiuto, chief US economist at Mizuho Securities USA LLC in New York.
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