Dollar bonds added to losses, but S&P Merval shares jumped 7.6%

He new economic regime announced by the Ministry of Economy remains unconvincing and sows even more doubts in the market, recalibrate your views. The second day ISovereign dollar bonds fell and country risk reached 1,600 points. Meanwhile, stocks rebounded on Tuesday after Monday’s huge losses thanks to favorable opportunities.

Within this framework dollar bonds fell to 2.2%, and Country risk hits four-month highas it climbed above 1,600 basis points during the day. And investors are skeptical about the government’s ability to continue hoarding dollars and meeting the remaining commitments it must make. Reserves are set to fall again today US$640 million as a result of a new IMF payment.

Bad signals for the market

Over the past few hours, the international credit risk rating agency Moody warned that the migration of remunerated liabilities from the Central Bank to the National Treasury, promoted by the national government This will increase banks’ exposure to government debt and increase liquidity risk. The company’s review did not improve the situation with the Argentine assets.

“It is clear that the government’s statement on monetary issues over the weekend was very hasty, whereas the central bank (BCRA) should have been the main actor. The main thing is to reduce the gap (exchange rate) that hits the gondolas (with rising prices), which threatens the political capital of (libertarian President Javier) Miley,” said an economic analyst at a foreign private bank.

“What is worrying, and the markets are exposing this, is thatslow down the accumulation of reserves the central bank that places nervous bondholders “and that is why they have fallen, while country risk is naturally increasing. Pesos are being taken out of the market and are not getting out of the ‘traps’, this is causing the economy to decline, and that is why stocks (of the stock market) are hurting,” he added.

Dollar bonds

lDebt securities extended the previous day’s redalthough losses narrowed at the close. Thus, the biggest declines were Bonar 2038 (-2.2%), Bonar 2035 (-1.5%), and Global 2029 (-1.6%).

S&P Merval and ADRs

From my side, S&P Merval It rose 1.6% after falling nearly 10% on Monday. Stocks were the biggest rebounders Silver Commercial Society (+7.6%), Thorn (+6.1%) and Northern gas carrier (+3.8%). The securities grew the most abroad Galicia Financial Group (+4.4%), Take off (+4.4%) and Supervielle Group (+4.1%).