The drop in the benchmark -that measured by the bank JP.Morgan- it reached 1,773 basis points, 2.5% less than on Thursday, in line with the strong rises in Global bonds. With the jump of 8%, the GD38D led the advances, while the podium was completed by the GD35 (+ 4.6%); and GD30D (+ 4.4%). Among the Bonares, the increases were led by the AL30D, which rose 3.7%.
The impulse was given by the news – known last Wednesday – that A technical team from the Ministry of Economy and officials from the Central Bank (BCRA) will travel to Washington this Saturday to hold meetings with IMF staff in the framework of the debt renegotiation. Since then, Argentine bonds accumulated an improvement of up to 11.3%.
Previously, the Country Risk reached over 1,900 points, compared to a minimum level of 1,083 points in September 2020 after the closing of the external debt swap.
“Bonds can fall if there is not something that pushes towards a change of direction. In any case, I think there is already a feeling that we have to start looking at what can happen with an agreement with the IMF, towards the elections of 2023 , and these returns are not justified “, noted Javier Timerman, partner at AdCap and co-founder of Banza.
From a market point of view, Timerman considers that “The bonds are very cheap.” “Argentina is much closer to Ecuador than to Venezuela. All outside funds agree that there is very little the government should do to stabilize the bond market. But everything is a matter of credibility, “he analyzed.
The managing director of the IMF, Kristalina Georgieva, in a statement to the Reuters Agency, reiterated this Friday that the talks that are being held with Argentina are “constructive” but there is still “much to do”.
It also argued that Argentina it elaborates its own (economic) program to attack different challenges including inflation and poverty. I clarify that “it will not be a program of the Fund” that is eventually agreed.
ADRs y S&P Merval
Argentine stocks cut their upward trajectory on Wall Street this Friday and lost up to 8%, before a foreseeable profit-taking, encouraged by generalized declines in international markets, pending an early agreement of the Government with the Fund.
The declines in Argentine papers are led by BBVA Bank (-8%); Globant (-8%); and Mercado Libre (-7.1%); and Central Puerto (-6.6%).
In the local exchange, for its part, the BYMA’s S&P Merval Index lost 1.2% to 86,359 points, although it gained 7.5% for the week.
The daily losses were led by BYMA (-4.1%); Central Puerto (-3.7%); and Edenor (-3.2%).
Despite the weekly increases in the local square, “there is still a long way to go to agree on economic policies with both the body and the opposition so that they can be implemented and thus correct the imbalances accumulated over time, since otherwise, the inconsistencies could lead to a new crisis, “warned a specialist.
Last Wednesday it was known that officials of the Ministry of Economy and the Central Bank (BCRA) They will travel to Washington on Saturday to hold meetings with IMF technical staff to seek to renegotiate some $ 45 billion.
“The announcement was well received by investors and was also reflected in the strong rises that were seen within the panel of leaders. A small hope strongly moves local assets, both in equities and fixed income”, Indian Gonzalo Gaviña, PPI financial advisor.
Beyond an eventual agreement, the market will also pay special attention to the fine print of understanding. “There is still not much information in this regard, but it is known that it will be important that it be accompanied by an economic plan that gives a short-term air and allows for a 2022 with better spirits”, added the PPI financial advisor.
Meanwhile, global stock markets suffered steep losses on Friday and benchmark bond yields fell after a worse-than-expected labor data in the US, while markets remained volatile as investors assess the implications of the new omicron variant of the coronavirus.
Source From: Ambito
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