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Bond rally in dollars: the AL30 exceeded US$60 and the country risk closed below 1,200 points

Bond rally in dollars: the AL30 exceeded US$60 and the country risk closed below 1,200 points

Argentine bonds rose strongly this Monday, April 22 and the AL30, the most popular and traded title among local investors, surpassed the psychological barrier of US$60 in the Buenos Aires stock market, to accumulate a increase of more than 60% in the year, waiting for the national network that the president will provide Javier Milei to report the result of its economic management in the first quarter of the year.

The Bonar 2030 rose 4.7% on the day and closed at $60.10, and the entire sovereign debt curve now yielded less than 20% (IRR to the MEP).

“Unbeatable start to the week for dollar debt, with bonds opening takers in the morning but with the trend deepening during the round,” described from SBS.

In turn, the country risk measured by JP.Morgan bank It fell 5.6% to 1,148 basis points, the lowest level since the debt exchange in September 2020.

Milei said in a meeting with businessmen last week that will announce how the fiscal accounts were closed at the beginning of 2024, to which he announced that “The first quarter of the year ended with a positive financial result.”

The market’s expectation, in any case, is that it will make some extra or surprising announcement, something that official sources have ruled out for the moment.

The President has reiterated on several occasions that he aims to eliminate the exchange rate and implement a system of currency competition, control the fiscal deficit and shrink the State, among other points.

“Although on the economic side we see a correction of the Central Bank’s balance sheet at the cost of a recession that is beginning to affect collection and an exchange rate delay that is beginning to complicate costs, the ‘B’ side of this is the social conflict that begins to appear behind these corrections, which at the moment is not reflected in Milei’s approval in the surveys,” they indicated from EcoGo.

The consulting firm added that “the initial problem of support for the measures arises that it is required after a strong contraction in real income and adjustments in the relative prices of the economy.”

“At the political level, this week the opinions in committee of the Base Law and the Tax Law should be reached and then presented to the Chamber of Deputies”said Personal Investment Portfolio. Congress must begin to deal with a broad decree promoted by the ruling party that was rejected by the Senate and must now be debated in the Chamber of Deputies.

Meanwhile, The Central Bank bought US$304 million on the first day of the week and in this way accumulates purchases by more than US$14,000 million since the change of government, while the Gross reserves increased another 60 million dollars on the day and is close to passing the threshold of US$30,000 million.

In a day where the volume operated in the Single Foreign Exchange Market increased considerably in the cash segment with a total of US$578.84 millionthe monetary authority won 52.5% of what was negotiated.

It is that the field the pace of liquidation is beginning to increase, as warehouses at port terminals are filling up with soybeans, market sources said.

In April he accumulates purchases for US$2,896 million and surpassed already the result of February and March of this year. According to projections, there are still six wheels left to close April tIt would also exceed the US$3,273 million acquired in January.

Since December 13, 2023, total purchases by US$14,272 million and the net reserves would already be in positive balance.

Finally, a march was called for Tuesday throughout the country, which is considered very important, in protest against the cutting of funds to public universities.

Source: Ambito

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