Argentina Closes Tough Year With Its Best Bond Rally in Weeks
As a farewell to the no good, bad, awful year, the government’s so-called Discount bond due in 2033 gained 0.5 cent on Friday, not much in nominal terms but good enough for the best day since Nov. 21. The longer dated 2048 notes are up 0.7 cent, the most in more than two weeks. And the average yield spread over Treasuries, popularly known as country risk, which is flashed on Argentine TV networks on a daily basis, has tightened 20 basis points for the best day since Nov. 2.
A louder choir of voices has been heard from emerging market investors who say one of their big bets for 2019 is a rebound in Argentine debt. Whether they are already long the sovereign or will swoop in soon to scoop up more shall be seen. But for now, some good news is welcome.
Not even a surprise cabinet departure was enough to dent the positive mood in a general risk-on day in the market.