Argentine bonds recover this Monday, March 27, after the heavy losses of last week, while shares climb to more than 4% on Wall Street, in a positive day for international markets.
In that framework, the Argentine country riskas measured by JP Morgan, stood at 2,549 basis points, a maximum since last November 7.
Sovereign titles showed a majority of greens at the start of the financial day in New York, with rises in the Globalaes that reached up to 0.5% (GD46).
Argentine bonds suffered falls of 85% on average last week, after the Government announced a bond swap to which public bodies must adhere to deliver dollarized titles in exchange for other pesified ones.
The scant reserves of the Central Bank (BCRA), high inflation, which exceeds 100% year-on-year, and a high deficit in public accounts are issues that worry investors.
The recent exchange of dollarized bonds “is not a beneficial measure nor a disaster that leads us to the abyss,” The economist Rodolfo Santangelo said in radio statements and pointed out that “with this measure you can reduce the (exchange rate) gap, but for a few days. Here the issue is not who sells the bonds, the issue is who buys it. The problem of the capital market It’s demand, not supply.”
“The impact of the measure in the short term was not welcome. In bonds payable in foreign currency maturing in 2030, the price fall was greater than 4%, while the prices of financial dollars fell close to 3%, due to the expectation of greater selling pressure,” said the consultancy EcoGo.
“Only as a conjecture, the Government could be sowing seeds for an eventual exchange rate unfolding, within the package of measures that have just been announced,” estimated Jorge Vasconcelos, of the Mediterranean Foundation.
“Comparing current Rofex (futures) rates with inflation and the policy rate, we believe rates may continue to rise in the near term if they continue on an overshooting path as discouraging data continues to emerge.” Delphos Investment said. “However, if the economics team manages to tame the macro, these implicit rates look high but the current uncertainty and potentially bad inflation data for March leads to prudence dominating the scene,” she noted.
For its part, the tensions within the global banking system, which began with the bankruptcy of the US Silicon Valley Bank, complicate the complex economic situation in Argentina in a year marked by presidential elections.
Argentine shares on Wall Street
For their part, the ADRs of Argentine companies that operate on Wall Street operate with moderate increases. It highlights the progress of Vista Energy (+4%); Banco Macro (+3.6%); and Grupo Financiero Galicia (+3.4%).
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