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17h ago

Argentina’s Country Risk Jumps Past 1,000 After Buenos Aires Vote

Bond losses signal rising concern over fiscal pressure, with focus on near-term debt rollovers despite Milei’s pledge to stay the course.

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El riesgo país ya no es solo el financiero.

Overview

  • JP Morgan’s EMBI+ spread for Argentina moved above 1,000 basis points after a wide Peronist win in Buenos Aires province.
  • Argentine sovereign bonds fell sharply, widening spreads and lifting perceived default and financing risk.
  • Market participants expect tougher politics for a market‑friendly reform agenda and fear pressure to increase public spending.
  • Concerns include the government’s capacity to meet upcoming debt maturities despite assurances of policy continuity.
  • The spread had already topped 900 points before the vote, and at 1,000 points implies borrowing roughly 10 percentage points over U.S. Treasuries while attention shifts to the Oct. 26 congressional election.