Bonds in dollars fell again and country risk exceeded 2,500 points after making the exchange official

“It closes a week full of uncertainty and volatility in the market. To the otherwise complex international scenario faced by the sovereign debt, was added the public sector bond program. The market did not read the measure with good eyes and both the Globals and the Bonares ended the week with large losses“, PPI said.

In that context, hard currency-denominated stocks sank as much as 5.3% led by Bonar 2041, followed by Global 2029 (-5%) and Bonar 2035 (-3.4%). In the accumulated of the month, bonds in dollars fell to 18.7%.

“average price weighted of Global fell from US$27.07 last Friday to US$26 (-4%), pushed by a general drop in the curve of -3.2/-5.4%. For the Bonares, the decreases were between -1.8% and -4.9%”, highlighted PPI. So, Country risk shot up 1.5% to 2,501 basis points, the highest in more than 4 months.

Find out more – I followed the price of the blue dollar, official, CCL and MEP in Argentina

just this day The Argentine government formalized the presidential decree by which it was determined that official entities must deliver dollarized titles in exchange for other pesificados. Title “in pesos to be received by public entities it will be a new dual bond to 2036, which will pay as interest the maximum between CER (inflation) plus 3% or dollar (tied to the A3500 communication) plus 3%”said the financier SBS Group.

“Beyond the launched debt swap operation, currency bleeding concerns continue to take center stagesince the net reserves are at too critical levels and said strategy would not be the one that ends up contributing new supply”, said the economist Gustavo Ber.

“Instead, the initiative aims to have more tools to try to control the dynamics of financial dollarsas well as providing financing in pesos, to avoid shocks in this transition stage where the ‘macro’ imbalances and external noises are added to the usual pre-electoral dollarization,” he added.

This Thursday, the Central Bank (BCRA) sold another US$88 million to the exchange market -the lowest amount in six days-for which reason it accumulated a drain of US$588 million throughout the week, the worst balance in four and a half months.

bonds in pesos

For his part, Dollar-linked sovereigns closed mixed; the TV23 concentrated the volume and rose 0.3% (the longest ones traded little volume and alternated ups and downs). During the week, they rose 1.5% in the short tranche and 0.4% in the long tranche.

the dualsin turn, closed with average increases of 0.15% in the short tranche and 0.7% in the long tranche, and average increases of 0.3% accumulated in the week.

Regarding the segment CERthe leceres rose 0.5% this Thursday while the Bonceres they gained 0.6% on average (only the TX28 fell 1.4%). End to end in the week the CER debt rose 1.1% average along the curvereported SBS Group.

S&P Merval and ADRs

He S&P Merval it lost 2.5%, to 219,276.74 points as a provisional close, after a bullish start. The S&P Merval fell 1.1% in the last 4 days and accumulated six consecutive weeks of falls.

In the leading panel, the main decreases were for the bank BBVA (-6%), Cresud (-4.8%), and Banco de Valores (-4.8%).

For its part, Wall Street closed higher at the words of the US Treasury Secretary, Janet Yellen, who said that steps would be taken to keep American deposits safe.

However, Argentine papers closed with a majority of losses. The main decreases were for banks BBVA (-3.8%), and Macro (-2.8%), and Cresud (-2.8%). The increases, for their part, were led by Globant (+4.6%), Loma Negra (+1.5%), and Edenor (+1.3%).