Markets: Argentine bonds rise and country risk falls for the eighth consecutive round

President Milei was present on September 23 at the Wall Street stock exchange.

’s stock assets operated with selectivity on Wednesday, while the country’s risk continued to decline, reaching minimum levels in six months, due to speculative positions at a time when political issues are once again capturing the attention of investors. The sovereign bonds in dollars averaged a slight daily gain of 0.5%at their highest prices since they went on the market in 2020.

The Chamber of Deputies will discuss this afternoon the future of a law that guarantees the financing of public universities and was vetoed by the ultra-liberal president Javier Milei on the grounds that it hits the country’s coffers.

The stock index S&P Merval of the Buenos Aires Stock Exchange operated with a 2% profit at 12:50 p.m., in the 1,766,000 pointsafter rising 1% the day before.

Among the shares and ADRs of Argentine companies traded in dollars on Wall Street, gains prevailed, also driven by the positive bias of the main New York indices, which rose 0.5 percent. The 5.7% rise in YPF’s ADR stood out (to USD 23.36).

Source: Rava Bursátil-prices in dollars. (Updated 12:50 p.m.)

The Chief of Staff Guillermo Francos confirmed this Tuesday that Yacimientos Petrolófilos Fiscales (YPF) is about to sign an agreement to sell 30% of the gas produced in Vaca Muerta. The result of the transaction would be the income of a sum of USD 140,000 million in 20 years. The announcement was made within the framework of the Colloquium of the Industrial Union of Córdoba (UIC). The official assured that the signing of this YPF agreement would be with “one of the most important companies in the world.”

“The possible maintenance of the veto on university financing can be considered a greater sign of political robustness,” assessed the clearing and settlement agent. is born.

He country risk Argentine produced by the JP Morgan bank fell 17 units to 1,168 basis pointslevels similar to those recorded last April and very close to the minimums recorded during the presidency of Javier Miley (1,143 points on April 22), who took office last December. This indicator, which measures the rate gap between US Treasury bonds and their emerging peers, gives way for the eighth wheel consecutively.

Although Argentina’s country risk is falling constantly, this does not distance the country from the scenario of a closed international capital market. Financial analysts considered that the probabilities of default on Argentine debt were reduced, but not completely eliminated.

A report of Wise Capital He stressed that “the Government is betting its pieces on money laundering, the moratorium and Personal Assets to overcome the decline in currency settlement. At the same time, it seeks to stimulate the entry of investments through the regulation of the RIGI (Incentive Regime for Large Investments). A significant volume of maturities is observed concentrated in the months of January and February, where commitments corresponding to duals, Lecaps and dollar bonds accumulate. Although the Government has reported that the necessary funds have already been reserved to meet payments in dollars, we consider it essential to maintain the fiscal surplus. Likewise, it is key to rejoin the international credit market to ensure the ability to refinance debt and manage future maturities in a sustainable manner.”

“Bonds represent approximately 60% of Argentina’s total debt by 2025. This leads us to consider three possible scenarios, given that it would be utopian to think of accumulating international reserves without having a debt exchange (specifically of the Bonares) as a result of a change in article 65 of the Financial Administration Law (which establishes that debt exchanges must improve amounts, terms and/or interests), headed by a Decree of Necessity and Urgency (DNU). The other scenarios include a new agreement with the IMF or another international organization and, finally, that the country risk reaches 1,000 points by the end of 2024, which would allow the government to enter international markets to refinance the debt,” the experts evaluated. Wise Capital experts.

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