This way, Argentina is once again getting closer to being able to issue dollar-denominated debt in international markets
Compartir:
In today's trading session, the Country Risk index managed to break through the floor of 500 basis points for the first time since mid-2018, and sovereign bonds recorded a widespread improvement in their prices.
The movement took place in a context where expectations for the year 2026 are focused on the possibility that Argentina will once again issue dollar-denominated debt in international markets.
The focus of analysts and investors is on the government of Javier Milei and its ability to access external financing at more reasonable rates. A scenario of lower borrowing costs would allow the Executive Branch to extend debt maturity terms, ease pressures on the local foreign exchange market, and provide signals of predictability that could encourage capital inflows into the domestic economy.
El presidente Javier Milei.
In this framework, the country risk indicator prepared by JP Morgan bank serves as a central benchmark for assessing the performance of fixed income in emerging markets. This index measures the spread that each nation must pay in relation to United States Treasury bonds of the same duration, and it is closely monitored by international investors.
During the session, at 1:55 p.m., Argentine sovereign bonds showed an average increase of 0.6%, in line with the performance of the Global bonds issued under New York law. At the same time, country risk fell by 15 units and stood at 496 basis points, marking its lowest level since June 11, 2018, when it had reached 487 points.
El presidente Javier Milei.
The improvement in bond prices has a direct impact on the cost of financing. In the fixed-income market, prices and rates of return move in opposite directions: when bonds rise, their yield falls, which translates into more accessible conditions for the issuer.
The better financial climate also had an impact on the local stock market. Driven by the drop in country risk and a slight upward trend in the Nasdaq index on Wall Street, the S&P Merval index of the Buenos Aires Stock Exchange showed an increase of 2.8%, reaching 3,220,000 points. This level represents a nominal record for Argentina's main stock market index.
