ADRs and dollar bonds rebound strongly after Fed signals rate cuts

ADRs and dollar bonds rebound strongly after Fed signals rate cuts

The Dollar-denominated bonds reverse losses and rise at the end of a week to forget, both for the Government at a political level, as well as for the set of Argentine assets that were dyed red after the noise that was generated after The Senate approved the new retirement mobility law with 61 votes in favor and 8 against, which hours later was vetoed by President Javier Milei.

This Friday, the titles registered a majority of advances, after the words of the president of the Fed, Jerome Powell, in Jackson Hole, on a rate cut in the near future. “The time has come for a monetary policy adjustment,” He said during his traditional speech at the meeting of central bankers in Wyoming

In this way, public securities rebound after several days of declines. The rises are led by those governed by foreign law. The main gains are seen in Global 2046 (+2.7%), Global 2029 (1.7%) and Global 2041 (+1.6%).

In this framework, The country risk measured by JP Morgan fell by 1.1% to 1,552 basis points, although in the weekly cumulative figure it recorded a jump of 5% (72 units).

In the last session, bonds closed the day between 1.4% and 1.8% down on the Globales market in New York. Local falls were much more muted (0.9% in GD30D and 0.6% in AL30D), leaving the weighted index at 46.3 (-1.12%). Falling for the third consecutive day, but yesterday, in particular, the official presence in the market was felt strongly and early.

Argentine stocks on Wall Street

In Meanwhile, on Wall Street, Argentine ADRs rise up to 3.1%. The increases are led by Loma Negra, Supervielle Group (+2.9%) and Galicia (+2.7%).

Meanwhile, in Buenos Aires The S&P Merval index climbs 1.4% in pesos to 1,600,154.36 units, and gains 1.1% measured in dollars. Byma (+3.4%), Loma Negra (+2.3%) and Supervielle (+2%) record the highest positive variations.

It is worth remembering that Argentine assets suffered a new punishment on Thursday, after the Government’s two setbacks in Congress. The opposition united on Wednesday (with part of the PRO and radicals) and overturned the decree for the special management of funds for $100 billion in the State Intelligence Secretariat (SIDE).

Added to this was the approval of the pension reform in the Senate on Thursday, which implies greater public spending. However, what the market expects is that the law will be vetoed by President Javier Milei.

Source: Ambito

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