Argentinian bonds are crushed amid political tension, and country risk rises for the second consecutive day.

Argentinian dollar bonds are once again affected by political tensions and are trading lower this Tuesday, February 27th. In this regard, the country risk rises for the second consecutive day, surpassing 1,700 points.

Foreign currency bonds are experiencing widespread declines of up to 2.6%, led by the Global 2038, Bonar 2029 (-1.8%), Global 2029 (-1.5%), and the Bonar 2041. Consequently, the country risk increases by 2.5% to 1,752 basis points, according to J.P. Morgan’s measurement.

The national government withheld 13.5 billion pesos from the province of Chubut, and Governor Ignacio Torres announced that if the Federal Government does not return the money, the province will not send its gas and oil out of the province. Chubut has filed a claim before the Federal Justice for the coparticipation funds amid a strong political dispute. The filing seeks an urgent solution, and in the meantime, Chubut authorities announced they will also approach the Supreme Court of Justice, given its original jurisdiction in cases of one state’s lawsuit against another, as is the present situation.