From Buenos Aires Times · David Feliba, Bloomberg · · 1m 10s
Argentina bond sell-off hits investors
Argentina's bond market crashes as election fears rise.
In brief
Argentina's bond market crashes as election fears rise. Argentina's bond prices plummeted to 12% yields amid election worries and debt payments. Originally reported by Buenos Aires Times.
Argentina bond market drops
Argentina's sovereign dollar bonds have been the worst performers across emerging markets over the past two months.
Yields surge to 12%
Yields pushed to nearly 12 percent earlier this week and spreads to their highest level in more than a year.
Investors surprised
Most large investment funds were overweight and surprised by the magnitude of the sell-off.
Election fears grow
President Javier Milei's re-election prospects and the country's ability to meet billions in upcoming debt payments.
Debt payments loom
Argentina faces roughly US$25 billion in hard-currency debt payments next year.
Investor confidence drops
Government confidence index hovering near 40 percent, the lowest levels of Milei's presidency.
Debt crisis deepens
Argentine residents held 23.3 percent of Global 2030 bonds at end of June, down from 35.9 percent.
Election outcome matters
If Milei wins 2027 election, sell-off becomes distant memory; if he loses, crisis worsens.
The bottom line
Argentina's bond prices plummeted to 12% yields amid election worries and debt payments.
