Argentina’s sovereign peso bonds fell Thursday following a surge in trading volume and prices the day before, raising speculation of government intervention to lower borrowing costs ahead of key Treasury auctions. Notes due in 2029 and 2030 rallied over 4% Wednesday, with trading volume reaching 3 trillion pesos—three times the usual level. Brokerage PPI, consultancy 1816, and strategist Martín de la Fuente estimated purchases totaled around 2 trillion pesos ($1.3 billion), suggesting an official buyer.
The bonds resumed declines Thursday, dropping as much as 1.5% before recovering slightly. PPI noted the intervention aimed to reduce yields ahead of the year’s final debt auctions, which face 10.5 trillion pesos in maturities next week, followed by 66 trillion pesos in subsequent auctions. The Economy Ministry and central bank declined to comment.
Investor confidence has waned due to concerns over next year’s presidential elections, economic stagnation, and upcoming sovereign debt maturities. Dollar bonds also fell, with some at their lowest since October 2025. Argentine dollar bonds were the worst performers in emerging markets Thursday, down 2 cents on the dollar.
De la Fuente cited concerns over the government’s ability to meet $25 billion in hard-currency debt payments due in 2027, stating the intervention appeared intended to signal desired yield levels for peso bonds.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing