The sharp change in US monetary policy has triggered a positive trend in Argentine bonds. The market anticipates that there is a chance of further increases.
Argentine sovereign bonds are trading higher on Wall Street this Thursday, September 19, climbing up to 0.97%led by the Global 2035 (GD35), followed by the Global 2046 (GD46), which lost 0.94%, and the Global 2041 (GD41), which lost 0.85%. This follows the rate cut of 0.50% in the United States, which took place on Tuesday, the first in four years, and in a context in which the appetite for risk in the markets is growing.
For the analyst Leonardo Svirsky, “The market may have a bullish rally because bonds can still recover a lot”“and believes that this is due to the fact that the news has been good in financial matters, the international context is favourable, following the rate cut in the US and anticipates that, if the Government manages to break the 4% inflation barrier, the context will be even better.
“In the face of such a sharp drop in rates in the United States (data that surprised and at the same time frightened the market because they think that the Fed sees, in the future, that such a high rate may harm the economy more) emerging countries are the ones that benefit the most, since funds are looking for higher returns, although with greater risk,” explain the Bull Market Brokers Research team about the upward trend. And they mention, in that line, that, for example, the EWZ ETF (Brazil) rises more than 0.5% and the EEM (emerging) rises more than 1%.
Nora in development.-
Source: Ambito
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