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Argentine Markets Test Bond-Fueled Calm As Peso Gap Narrows
(MENAFN- The Rio Times) Key Points
The official peso and blue dollar now trade almost side by side, shrinking a once-explosive gap and signalling fragile but real stabilisation.
A new US$1 billion 2029 dollar bond and a cooler reading on inflation left equities and bonds lower as investors weighed price vs. reform progress.
The Merval is consolidating near record highs, with exporters and banks outperforming while heavy industry and utilities bear the brunt of profit-taking.
The latest session in Buenos Aires saw a rare mix of stability and unease. After the treasury sold US$1 billion of new local-law dollar bonds at about 9.3% and November inflation landed near 2.5%, the S&P Merval slipped 1.1%.
Sovereign bonds lost roughly 0.7%, while the country risk index edged higher. ADRs in New York fell more than 3% as foreign desks judged the bond's yield steeper than hoped.
On the currency side, the official wholesale rate hovered around 1,436 pesos per dollar, barely changed despite a weaker global greenback after the Federal Reserve's rate cut.
The blue dollar traded near 1,450, leaving a gap of barely 1–2%-a dramatic compression from the triple-digit spreads of the previous, more interventionist era.
Four-hour charts show spot locked between 1,435 and 1,438 with soft momentum, while daily and weekly trends still point to a gradual, managed depreciation rather than a new spiral.
Equity trading reflected that same cautious mood. The Merval closed at about 2.98 million points, still not far from this month's record but now in a short corrective phase.
Over the past week, top gainers have included Banco Macr, power-grid operator Transener, Banco Patagonia, cement maker Loma Negra and Telecom Argentina, all plays on tighter budgets, infrastructure and exports.
Among the hardest hit in recent sessions were Aluar, Metrogas, Pampa Energía, Edenor and Cresud, a cluster of capital-intensive or regulated names more exposed to policy noise and tariff politics.
Taken together, the compressed exchange-rate gap, demand for the new bond and the Merval's elevated level suggest markets still give Javier Milei's orthodox experiment the benefit of the doubt.
But the sell-off in rate-sensitive stocks and the higher risk premium underline a clear message: without faster progress on labour and fiscal reform-and with unions and hard-left factions already mobilising-the patience of investors will not be unlimited.
The official peso and blue dollar now trade almost side by side, shrinking a once-explosive gap and signalling fragile but real stabilisation.
A new US$1 billion 2029 dollar bond and a cooler reading on inflation left equities and bonds lower as investors weighed price vs. reform progress.
The Merval is consolidating near record highs, with exporters and banks outperforming while heavy industry and utilities bear the brunt of profit-taking.
The latest session in Buenos Aires saw a rare mix of stability and unease. After the treasury sold US$1 billion of new local-law dollar bonds at about 9.3% and November inflation landed near 2.5%, the S&P Merval slipped 1.1%.
Sovereign bonds lost roughly 0.7%, while the country risk index edged higher. ADRs in New York fell more than 3% as foreign desks judged the bond's yield steeper than hoped.
On the currency side, the official wholesale rate hovered around 1,436 pesos per dollar, barely changed despite a weaker global greenback after the Federal Reserve's rate cut.
The blue dollar traded near 1,450, leaving a gap of barely 1–2%-a dramatic compression from the triple-digit spreads of the previous, more interventionist era.
Four-hour charts show spot locked between 1,435 and 1,438 with soft momentum, while daily and weekly trends still point to a gradual, managed depreciation rather than a new spiral.
Equity trading reflected that same cautious mood. The Merval closed at about 2.98 million points, still not far from this month's record but now in a short corrective phase.
Over the past week, top gainers have included Banco Macr, power-grid operator Transener, Banco Patagonia, cement maker Loma Negra and Telecom Argentina, all plays on tighter budgets, infrastructure and exports.
Among the hardest hit in recent sessions were Aluar, Metrogas, Pampa Energía, Edenor and Cresud, a cluster of capital-intensive or regulated names more exposed to policy noise and tariff politics.
Taken together, the compressed exchange-rate gap, demand for the new bond and the Merval's elevated level suggest markets still give Javier Milei's orthodox experiment the benefit of the doubt.
But the sell-off in rate-sensitive stocks and the higher risk premium underline a clear message: without faster progress on labour and fiscal reform-and with unions and hard-left factions already mobilising-the patience of investors will not be unlimited.
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