The bonds have a long negative streak, due to local issues such as the uncertainty surrounding the negotiations with the IMF and some macroeconomic imbalances that are still far from being resolved, and an adverse international scenario due to the expectation of rate hikes by the Fed.
“The weighted average price returned to the minimum levels after the restructuring. The indicator stood (on Tuesday) at US$30.73. The curve deepened its negative slope and the average rate exceeded 21% for the first time since the debut of the new Titles”, deepened on Tuesday from Portfolio Personal Investments.
For his part, the Neix Clearing and Settlement agent stated that “the negotiation with the IMF is the main catalyst for Argentine sovereign debt and the differences between the two positions continue to be very large.”
“So far this year, global bonds have lost 10% and hit new lows since the restructuring (of sovereign debt carried out in 2020), he added.
Argentine Foreign Minister Santiago Cafiero met Tuesday with US Secretary of State Antony Blinken and said he hoped to receive support from the United States in negotiations with the IMF, while Argentine Vice President Cristina Fernández criticized the previous government for the debt contracted since payments to the agency during 2021 exceeded the fiscal expansion carried out by the Covid-19 pandemic.
In parallel, the international scenario does not help local assets. The market warns that the Fed will be forced to raise US rates four or five times during 2022, and sooner than expected.
This caused a fall in the price of US 10-year bonds on Tuesday, whose yield reached 1.86%, a record in two years. Therefore, they put upward pressure on the yields of bonds issued by countries with more fragile economies.
S&P Merval and Argentine ADRs
The leading stock index S&P Merval lost a slight 0.1% to 83,304 units, while shares of Argentine companies on Wall Street traded up and down.
the papers of Transportadora de Gas del Sur and Holcim recorded increases of 1.4% and 1.1%, in that order, in the leading panel of the Buenos Aires stock market.
In the opposite direction, Loma Negra and YPF registered losses of 2.1% and 1.7%, respectively.
The ADRs of Argentine companies on the New York Stock Exchange operated unevenly, with increases of up to 3.3% led by Central Puerto and decreases of up to 1.6% in the case of Edenor.
Source From: Ambito
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