The Buenos Aires stock market rises prior to inflation data, which will be known this afternoon

This afternoon, the National Institute of Statistics and Censuses (Indec) will release the Consumer Price Index (CPI) for December and all of 2021. According to private estimates, Last month’s inflation was 3.6%, which would send the annual rise above 50%, despite the government’s efforts to combat it.

In 2020, the CPI registered an increase of 36.1%, in a period characterized by the fall in economic activity due to the outbreak of the coronavirus pandemic.

With different intensities, the increase in inflation levels was a phenomenon that occurred in most countries, in which the 2021 rates were the highest in four decades, as in the case of the United States.

The imminent rate hike by the Federal Reserve, in this context, is another determining factor for emerging markets.

Meanwhile, the administration of President Alberto Fernández seeks a political nod from the United States to advance in the negotiations with the IMF to refinance some 45,000 million dollars, impossible to face due to lack of reserves in the coffers of the central bank (BCRA).

Bonds and country risk

Between the sovereign dollar bonds, the local legislation presented better returns than the foreign one, although in both cases the results did not have a good performance, especially in the most representative bonds, AL30 and GD30, because they presented decreases in dollars.

Meanwhile the dollar-linked sovereign debt continues to sell, falling 0.75% on average today in its three maturities. At these prices, -5.5% tna TV22 and T2V2 and -1% tna TV23 yield.

For its part, the bonds in pesos with CER adjustment operated mixed, offered the short section but taking the middle and long section of the curve, especially the DICP.

Country Risk, measured by JP Morgan bank, rises 0.1% to 1,821 basis points, its highest level since December 1.