Argentine sovereign bonds under New York law had a euphoric day in the markets.
The series of local bonds experienced increases of up to 20.97%, with AL29C leading the gains. Meanwhile, the Global 29, Global 30, Global 35, Global 38, Global 41, and Global 46 series recorded increases of up to 13%, driven by renewed optimism regarding financial support from the United States.
Support from the US Treasury for Javier Milei
The United States Secretary of the Treasury, Scott Bessent, stated that Washington is prepared to "do whatever is necessary" to support Javier Milei's government in its economic plan. The official from Donald Trump's administration emphasized that Argentina is a "systemically important" partner in the region and reaffirmed confidence in the reforms being carried out by the country.
According to Bessent, all tools are on the table: from swap lines and direct currency purchases to the possibility of interventions through the US Exchange Stabilization Fund. "Opportunities for private investment remain broad, and Argentina will be great again," he said.
Country risk: record drop of 21%
Country risk measured by JP Morgan (EMBI+ Argentina) stood at 1,142 basis points, after falling more than 300 points in a single day, which meant a 21% decline, the sharpest drop so far this year. This plunge immediately reflected investors' confidence in US assistance and local economic measures.
Export taxes and measures boosting the market
Another decisive factor was the official decision to temporarily suspend export taxes on agricultural exports until October 31. The measure seeks to encourage the inflow of dollars from the agribusiness sector, which boosted the improvement of bonds and reinforced the drop in country risk.
Bilateral negotiations for more support
Milei's government also advanced in negotiations with US authorities for a bilateral loan to strengthen the reserves of the Treasury and the Central Bank. These talks, together with Bessent's explicit support, consolidated a scenario of greater financial stability and positive expectations for the Argentine market.
