Argentina: Bonds Resume Decline and Head Towards Weekly Drop in a Month

The sovereign bonds in dollars that are experiencing the most significant declines are the Global 2029 (-3.9%), the Global 2041 (-2.5%), and the Global 2046 (-2.3%).

On Friday, March 8th, Argentinian bonds are once again declining and are poised to mark their first weekly drop in a month, amid a context of strong monetary contraction enforced by the Central Bank (BCRA) to curb rampant inflation. In this scenario, the country risk index (risk premium) has risen for the fourth consecutive session.

Against this backdrop, dollar-denominated sovereign bonds are trading with widespread declines on the local stock exchange. The ones experiencing the most significant drops include the Global 2029 (-3.9%), the Global 2041 (-2.5%), and the Global 2046 (-2.3%).

In this context, the country risk index has increased for the fourth consecutive trading day, rising by 1.6% to reach 1,670.3 basis points.

Meanwhile, Argentina’s main index, the S&P MERVAL, rebounds on Friday, March 8th, but is poised to deepen its weekly losing streak amidst a market attentive to local political issues and awaiting for new data from the United States. Local stocks are trading mostly higher.

In the local market, stocks posting the highest gains include Edenor (+2.7%), Loma Negra (+2.5%), and Grupo Financiero Galicia (+2.1%).

Meanwhile, among the stocks marking losses, Banco de Valores (-2.7%), Grupo Supervielle (-1.1%), and Sociedad Comercial del Plata (-1.1%) lead the declines.

So far this month, BBVA bank stocks have already accumulated a 14% increase and lead the ranking of the most significant advances of the month, following a very good financial report, along with Banco Macro.

ABOUT THE AUTHOR See More

Gabriel Micillo

Gabriel is a certified public accountant graduated from UNNE (National University of the Northeast, Argentina) and a software developer, currently pursuing a Master's degree in Finance and Economics. With nearly 8 years of experience working for accounting firms and brokerage firms. Concurrently, he has produced economic and financial reports on the current state of regional economies for the clients of the establishments where he has worked. Additionally, he assisted colleagues like Ignacio Teson in the drafting and editing of articles on similar topics in English language.

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