The Limited Times

Now you can see non-English news...

Headwind: global markets shake and hit Argentine bonds


Dollar titles start the week on the wrong foot, with falls of up to 3%. Argentine stocks on Wall Street are also moving with reds.

Beyond the government's attempts to prop it up,

Argentina's debt

suffers from the ups and downs of the global market.

After the rally that it registered in January, this Monday extends the falls that it had presented towards the end of last week and this noon it

drops to 3%


Fears in global markets mark the pulse of a wheel in which

Argentine shares on Wall Street also lose up to 3.5%.

A little less than three weeks ago, the Minister of the Economy, Sergio Massa, announced a debt repurchase to "maintain parities" of debt titles and lower country risk.

The market distrusted this measure

and read that the Government was using a new way of intervening in the price of the financial dollar.

In between, a change in global expectations put pressure on Argentine bond prices.

After having risen more than 20% in January, the bonds that entered the exchange in 2020 accumulate

drops in the first 4 rounds of this month for up to 7.6%.

It is precisely the

Global 2030 in dollars,

the title that captured more than 90% of the debt repurchase operations that the Central executed,

the one that falls the most.

Global humor is what, ultimately, sets the pulse.

After employment data in the United States that anticipated a possible greater wage pressure in that country and that would jeopardize the disinflationary path that had begun, this Monday

the rate of the 10-year Treasury bond rose to 3.61%

and all emerging country bonds suffered losses. 

"Watching for new signals from Jerome Powell (head of the Federal Reserve), especially after the solid employment data on Friday, Wall Street is once again leaning towards greater caution, while 'macro' data and corporate balance sheets continue to be analyzed after the start positive year," said economist Gustavo Ber.

In this context, "domestic assets are finally taking the opportunity to test

a more determined profit-taking

," he added.

PPI analysts said: "The adverse international climate coupled with a buyback program with questionable benefits could deepen the rotation from short bonds to longer bonds. For example, the AE38 against the GD30 looks quite attractive in terms of historical pricing, but the same can be traced against other instruments such as the GD38 or GD35".

External pressure is also felt in the stock market.

Argentine papers on Wall Street fell almost 4%, with Irsa Propiedades Comerciales leading the way.

With this climate, the

Merval index fell more than 2%

and accumulated a drop of 6.5% since its closing in January.


look also

Renault and Nissan rearrange their alliance in the world and launch four new pickups for Argentina

City: inflation in January reached 7.3% due to the rise in services

Source: clarin

All business articles on 2023-02-06

You may like

Trends 24h

Business 2023-03-29T05:16:08.312Z
Business 2023-03-28T15:12:46.520Z
Business 2023-03-28T14:18:45.990Z


© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.