Bonds in dollars reverse the trend of recent days and they fall strongly this Wednesday, October 18in a day marked by the drop in the informal exchange rate, before new official controls in the city of Buenos Aires four days before presidential elections.
Under a global context of greater risk aversion, and in tune with the decline in emerging debt, sovereign bonds in dollars fell up to 7%, such is the case of Global 2035. They also noted significant falls the Global 2038 (-4.3%); and Bonar 2035 (-3.3%).
In that framework, the Argentine country risk measured by JP.Morgan bank rebounded 0.5%, to 2,388 basis pointsafter seven consecutive falls.
In recent weeks, portfolio dollarizations have been lightened in the face of an uncertain political and economic outlook after the presidential change that will take place on December 10.
The Minister of Economy and presidential candidate for the ruling party, Sergio Massa, said “Probably today (Wednesday) there will be more than 50 raids and arrests in the framework of the investigation into what have been the attempts to speculate” against the country’s currency.
This Wednesday, the Government managed to activate a currency swap with China for about 6.5 billion dollars freely available that seek the development of bilateral trade and the stability of financial markets in Argentina, the BCRA said in a statement.
In this context, the blue dollar fell $50 to $935, while the CCL dollar rose to $972 and the MEP dollar rose to $909.72. Last week the parallel hit a historic ceiling of $1,050.
“There are very few businesses (with the blue) because nobody wants to take the risk. The street is very complicated,” said an operator, referring to controls by different government agencies.
“Today, with a gap between financial dollars and the official exchange rate that is around 180%, a post-election devaluation in October or perhaps November – probably depending on the result – is practically guaranteed,” estimated Portfolio Personal Inversiones (PPI ). “Whether it will be effective or whether it will lead to a spiraling of inflation due to the lack of a fiscal anchor is part of another debate,” she added.
Bonds in pesos: how they operate this Wednesday, October 18
In the weight segment, the CER adjusted bonds They recover after the strong declines recorded in recent days. The rises are led by the PR13 (+2.9%), the TX26 (+2.2%), and the discount (+0.7%).
On the contrary, the dollar linked bonds operate with generalized falls: T2V4 loses 7.6% and TV24 loses 1%.
Shares and ADRs
In the stock market, The leading stock index S&P Merval of Buenos Aires fell a strong 4.2%, to 789,364.80 units, after reaching an intraday historical maximum in pesos of 734,791.35 units in the first deals and gaining almost 50% in ten business sessions.
Source: Ambito
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