The Argentine sovereign debt deepened its losses on Friday to unknown parities, for the fifth consecutive round, along with the general flight of positions among investors given the growing doubts about the country’s economic and political situation, plus global uncertainty due to inflation with recession.
The prices of most of the bonds scored new historical lows, only with the purchase of official entities such as the central bank (BCRA) and the pension entity Anses to try to stop the complex collapse, operators said.
They added in a Reuters poll that these titles lead the percentage drop in assets in South Americaso the country risk is also at its upper limits, which discourages any investment attention.
There is “no news or indicator needed to push them (bonds) even further into the free fall they are in (…) The global ones “price” very aggressive restructuring scenarios,” said the consulting firm Portfolio Personal Investments (PPI). .
The board of the International Monetary Fund (IMF) approved this Friday the first review of the agreement with Argentina for a debt of 44,000 million dollars, said a source with knowledge of the matter.
This guarantee -already discounted by the operators- allows the organism to make the disbursement of some 4,000 million dollars, for which the reserves of the BCRA will return to a level slightly above 42,000 million dollars.
The Ministry of Economy managed in the last two days to reduce debt maturities that the Treasury must face next week to only 40%, after two swap operations for 362,500 million pesos (about 2,923 million dollars).
The over-the-counter market for government securities fell a strong 2.2% average, after dragging a strong selling blow of 4.9% in the previous four rounds, with price perforations based on the start of trading with a giant restructuring in 2020.
The Argentine country risk of the JP. Morgan rose 38 units, to the all-time high of 2,323 basis points around 2000 GMT, being one of the worst indicators among emerging economies and with no limit in sight, according to specialists.
“The decline in the market is worrying, buyers do not appear because the indicators of the inflationary economy and the internal political problems grow daily,” synthesized a banking analyst.
“The leadership of the president (Alberto Fernández is) at its worst,” Synopsis Consultores said in a report. “His popularity at the worst moment of the entire cycle, alternative candidates are flourishing for (the presidential elections of) 2023 and Kirchnerism (led by Vice President Cristina Fernández) threatens to put obstacles in his economic program,” he said.
The benchmark S&P Merval of the Buenos Aires stock market was coupled to the adversity of the environment and closed with a decrease of 0.68%, to 82,605.64 provisional points, against a strong loss of 5.99% in the last four consecutive sessions.
The shares of the state oil company YPF rose just 0.08% due to selective opportunity purchases, among operators awaiting the ruling of a New York court on the expropriation issue, which could cause significant “costs and losses” if it were adverse Rava Stock Market said.
In an environment of a strict foreign exchange trap, the wholesale peso lost 0.13%, to 124.25/124.26 per dollar with the regulation of the BCRA, an entity pressured by import demand and the urgency to cover energy payments that make it lose foreign currency daily.
The dollars sold in the day by the monetary authority totaled about 95 million, to lose about 254 million in the week and give up almost 600 million in the course of June, according to operators and Reuters data.
In the alternative zone of the peso, the trades of the stock market “counted with liquidation” (CCL) were located at 238.5 per dollar, in the “MEP dollar” at 231.1 units and fell to the top floor of 226 per dollar in the marginal (“blue “) with a gap of 81.9% before the wholesale segment.
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