Bonds Sink as Fernandez ‘Unnerves’ Investors: Argentina Credit

Argentine President Cristina Fernandez de Kirchner’s growing confrontation with the country’s largest newspaper is exacerbating the biggest tumble in its dollar bonds in two months and prompting JPMorgan Chase & Co. to recommend investors cut holdings.

The yield on the South American country’s benchmark 7 percent securities due in 2015 increased 74 basis points, or 0.74 percentage point, from Aug. 23 through yesterday, the biggest two-day jump since June 7, according to data compiled by Bloomberg. Emerging-market bond yields climbed an average of 18 basis points during the same period, according to JPMorgan indexes.