Thursday, February 2

Bonds in dollars rose for the first time in the year and Country Risk moved away from 1,900 points

The rates of return of bonds in dollars (IRR) exceeded 25% per year, while five-year default insurance coverage (CDS) remained high, reflecting market doubts.

PPI, in its market closing, analyzed that “Argentine bonds took air after twelve consecutive rounds in red. Globals posted their first positive close of the year and put a pause on the recent correction.”

In this regard, they indicated that the rebound (+0.6/+1.0%) from post-restructuring minimum levels led the weighted average price up to US$30.98 (+US$0.25 1D, US$0.96 5D). “Accompanying the global ones, and in line with the pause in foreign rates, the country risk fell,” they affirmed.

In this framework, Country Risk Country Risk fell 0.53% and closed at 1,880 points. “Is it sustainable? There were no concrete definitions or progress in the negotiations with the IMF,” closed Portfolio Personal Inversiones.

For its part, the sovereign debt in pesos, hand in hand with the dollar-linked, showed demand again and rose 0.5% on average, with greater activity on TV23 (+1.2%). Finally, “Bonds in pesos with CER adjustment they had a break after the rally of the last wheels, and fell 0.3% along the curve (flat in the short section),” reported Grupo SBS.

“The cautious external climate continues to act as a serious condition for risk appetite, hence household assets are negatively influenced beyond the fact that the attention of the operators continues to be mainly concentrated on the IMF”, said Gustavo Ber, an economist at Estudio Ber.

“Some more constructive signs and expectations allow a respite after the heavy punishment that bonds and ADRs have been accumulating, given that forecasts grow that a ‘light’ agreement could finally be reached”, estimated.

The Argentine Foreign Minister Santiago Cafiero, met on Tuesday with the US Secretary of State, Antony Blinken. After the meeting, the official said that he hoped to receive support from the United States in the negotiations with the IMF.

As for foreign markets, investors are attentive to the Fed’s decision that could raise rates in the US four or five times during 2022, and sooner than expected. US Treasury bond yields fell after hitting new two-year highs on Wednesday.

S&P Merval y ADRs argentinos

The leading S&P Merval index of Argentine Stock Exchanges and Markets (BYMA) gained 0.3%, to 83,615.75 units, after losing 1.98% in the previous session.

The largest increases in the leading panel were Transportadora de Gas del Norte (+2.6%), Cresud (+2.2%), and Pampa Energía (+2.1%). As for the biggest declines, Central Puerto fell 1.9%, Grupo Superville and YPF both lost 1.6%.

The ADRs that led the rises were Pampa Energía (+1.4%), Grupo Galicia (+1%), and Banco Macro (+1%). While the papers that fell the most were Mercado Libre (-3.7%), Edenor (-2.7%), and YPF (-1.9%).