BUENOS AIRES, Mar 30 (Reuters) – Argentina’s bonds fell again on Tuesday amid increased investor mistrust given the country’s slow negotiation with the International Monetary Fund (IMF) to restructure a $ 45 billion debt. amid an economy hit by the coronavirus pandemic.
Argentine Economy Minister Martín Guzmán will travel to Europe in mid-April to meet with peers, officials and representatives of the private sector to discuss the renegotiation with the IMF and the debt with the Paris Club for about 2.4 billion dollars.
“Bonds are once again near minimums. Clearly, the outlook is not very encouraging in the absence of an agreement with the International Monetary Fund, with country risk at very high levels,” said Matías Roig, director of Portfolio Personal Inversiones.
“This is also affecting the national government’s placements in pesos,” he added, noting that “although there is a lot of participation from the public sector, in terms of CER (inflation) placements, the rates are higher. Not so much. those of short term, but those that pass the year “.
Argentina placed Treasury securities on Monday and exchanged debt for 246,862 million pesos nominal value (about 2,686 million dollars), as part of its financing in the domestic market due to the impossibility of accessing external credit due to the high cost generated by the risk country.
* Bonds in the OTC segment finished with an average decline of 0.8%, after yielding 2.3% in the previous four rounds of business. The benchmark title ‘Bonar 30’ fell 0.9%.
* “Operators still do not detect ‘drivers’ that could enable a rebound in the penalized valuations. This is due to the fact that the second wave (of COVID-19) adds restrictions that could affect the economic rebound, as well as accentuate fiscal imbalances and monetary, at times when the postponement of an agreement with the IMF is discounted, “said an analyst.
* The country risk measured by the JP.Morgan bank rose 19 units, to 1,595 basis points, close to its historical maximum level of 1,669 units recorded at the beginning of the month, since the millionaire debt swap that the country carried out six months ago.
* The peso in the wholesale segment depreciated a slight 0.04%, to 91.95 / 91.96 units per dollar, with the participation of the central bank, which was able to buy about 100 million dollars for its reserves, commented operators.
* “The central bank continues to slow down the rate of depreciation of the official exchange rate, but if core inflation persists at around 4% per month, we find it more difficult to contain the gap between the official dollar and the (alternative) cash with liquidation” said settlement and clearing agent Neix.
* “The strategy is to anchor the official (wholesale) exchange rate and contain the gap through interventions in the bond market: doubling (exchange rate) in fact,” he added.
* The BCRA uses part of these dollars, which it buys in the wholesale round (MULC) to supply the ‘CCL’ market via the bond market. In other words, the entity buys against dollars (reserves fall) and sells against pesos (contracts the monetary base). For this reason, there is no direct impact on international reserves, which barely rose just over 300 million dollars in the month.
* In the alternative segments, the peso traded at 147.85 units on the ‘CCL’ stock market, at 141 on the ‘MEP dollar’ and at 141 on the marginal exchange band.
* The S&P Merval index improved 1.8%, to a provisional close of 48,090.66 units, led by shares in the energy sector.
(Reporting by Walter Bianchi; Additional reporting by Hernán Nessi; Edited by Jorge Otaola)