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Country risk skyrocketed and exceeded 1800 points due to the fall in Argentine bonds

The risk country played this Tuesday at noon the 1809 points and came to a new record after last year’s debt restructuring. During the afternoon, however, the rise moderated – which went from 1.9% to 1.1% – and closed at 1795 units, 19 units more than in the previous day.

The strong rise in country risk was explained by the drop in the price of bonds in dollars. Since the price of a title is inversely proportional to its rate, the drop in its value on the screens triggers the yields and, with them, boosts the indicator produced by JP Morgan.

Read also: Blue dollar today: how much it is trading at this Tuesday, November 23

What does country risk measure? The difference between rates of the sovereign bonds of each nation with respect to the yield that pays a security of the United States, considered free of risk.

An indicator in the 1800 point zone indicates that if the National State wanted to go out and issue debt in the international market should pay a rate around 18%.

How much Argentine bonds and stocks fell

At the close, the bonds Argentines in dollars fell more than 4% in various terms. Both the 2035 bond (AL35D) and the 2038 bond (AE38D) sank 4.7%; the second steepest decline was for debt to 2029 (AL29D), which fell 4.1%.

“The Argentine bonds do not find a floor. The debt market is focused on the short term and the macro challenges in the coming weeks. The electoral result did not dissipate the uncertainty in the economic sphere and the combo of the last months is repeated: an agreement with the IMF pending, the noise in the monetary and the exchange pressures negatively influence the markets, “he explained Personal Investments Portfolio.

The leading index of the Buenos Aires Stock Exchange, the S&P Merval, moved lower this Tuesday.  (Photo: Juan Vargas / NA).
The leading index of the Buenos Aires Stock Exchange, the S&P Merval, moved lower this Tuesday. (Photo: Juan Vargas / NA).

On the side of the Actions, the movements were mixed. At the local level, the papers show the majority of red numbers, which are coupled with the downward movement that the international market showed on Monday.

The S&P Merval index, leader of the Buenos Aires market, fell 2.2% on Tuesday. The greatest losses were recorded by BBVA (-6.2%), Telecom (-5.9%) and Loma Negra (-4.7%).

Read also: Poverty in Argentina: one out of every three middle class households does not cover a basic food basket

On New York, locally sourced stocks rebounded during the first hours of trading after Monday’s losses. Finally, the roles alternated reds and greens, with more ups than downs. On the side of increases, the ADRs of Central Puerto (4.7%), Ternium (2.5%) and Pampa Energía (2.1%) stood out. In the extreme position, IRSA shares fell 2.8% and Mercado Libre lost 2.3%.

Country risk skyrocketed and exceeded 1800 points due to the fall in Argentine bonds

“Investors continue watch out for political signals since they are the ones that will mark the viability of reaching a consensus among the main forces from the presentation of the ‘multi-year economic plan’. Not only is this challenge complex, in view of the pulls, but also even reaching an agreement with the IMF, the Doubts regarding the ability to meet the goals committed in the coming years ”, he analyzed Gustavo Ber, economist of the homonymous study.

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HELEN HERNANDEZ

Helen Hernandez is our best writer. Helen writes about social news and celebrity gossip. She loves watching movies since childhood. Email: Helen@oicanadian.com Phone : +1 281-333-2229

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