Country risks cross the 600 basis points barrier, values that we have not seen since mid-January. The reaction comes after it emerged over the weekend that the government would buy back bonds along the entire maturity curve, news that gave an additional upward boost to sovereign debt.
In the first negotiations this week Country risk is set at 596 basis points, According to the information provided by Rafa. This is a decrease of 51 units compared to the previous close (-7.88%) and reaches the lowest value in ten months.
On January 9 of this year, the index issued by JP Morgan reached a minimum of 560 basis points, This is a level that has not been reached since 2018. However, amid the international uproar generated by tariffs on US imports and the tension surrounding the legislative elections, since then, Qatari risks have been on the rise.
As of the Friday before the legislative elections, it closed at 1,081 basis points, evaporating Argentina’s access to international debt markets. But after La Libertad Avanza won the elections, sovereign bonds witnessed a decline pool Historical and Irrigation in the country has collapsed by 485 units so far.
Today, sovereign bonds are trending higher again: Bonaris rose 2.1% (AL35D) and global bonds rose 1.38% (GD30D). This optimism comes after Economy Minister Luis Caputo told investors abroad over the weekend that The government’s goal is to buy back bonds along the entire curveas revealed by the agency Bloomberg. Priority will be given to buybacks in the short section of the curve, The largest maturities are concentrated in the coming years.
“Argentina plans to buy back Globales with maturities in 2029 and 2030 Using a more economical source of financing in order to reduce the burden of upcoming maturities. With regard to education bonds, we remember that it is a process in which the debtor country generally issues a new bond guaranteed by an international organization to buy back debt that operates at higher rates, generating interest savings aimed at promoting investment in education.
On October 20, a week before the legislative elections, the Ministry of Finance announced the start of negotiations to implement the process of buying back bonds in dollars. Within the “Debts for Education” program.. This process seeks to “reduce the country’s financing costs and enhance investment in education” with the help of multilateral agencies and organizations.
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