Argentina Default Shutting Buenos Aires Bond-Sale Window
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Argentina’s second default in 13 years is threatening to upend local governments’ plans to sell bonds abroad.
Borrowing costs for the province and city of Buenos Aires, which both sought to issue foreign-currency debt this year, have surged since a legal dispute prevented the nation from making a bond payment by July 30. Since then, yields on the province’s debt due 2015 have jumped almost 7 percentage points to 19.7 percent, while those on the city’s similar-maturity notes climbed 6 percentage points to 16.7 percent.