From Buenos Aires Times · Ignacio Olivera Doll, Bloomberg · · 1m
Argentina bonds drop as market flags intervention
Argentina's dollar bonds fall as investors fear government debt intervention.
In brief
Argentina's dollar bonds fall as investors fear government debt intervention. Argentina's dollar bonds dropped after market speculation of government intervention in peso debt ahead of key Treasury auctions. Originally reported by Buenos Aires Times.
Financial markets sink
Argentine financial markets sank Thursday with dollar bonds leading emerging-market losses.
Repo rates surge
The one-day peso repo rate leaped to an annualised 190 percent from 26 percent a day earlier.
Analyst warning
Belisario Álvarez de Toledo said the government prioritises exchange-rate stability over interest-rate stability.
Bond demand jump
Local bonds rallied more than four percent Wednesday after trading volume climbed to three trillion pesos.
Market intervention speculation
Analysts suggest government may be buying peso bonds to lower yields ahead of Treasury auctions.
Debt concerns
Argentina faces US$25 billion in hard-currency debt payments in 2027 with investors worried about repayment.
The headline
Argentina's dollar bonds dropped after market speculation of government intervention in peso debt ahead of key Treasury auctions.
