Argentine Bonds Fall on Government Proposal to Default Holdouts

Argentina’s dollar-denominated debt dropped on speculation the government’s offer to pay defaulted debtholders on similar terms as past restructurings will spur a U.S. court to order the nation to pay in full.

The government’s restructured notes due 2033 fell 1.09 cents to 52.66 cents on the dollar at 3:30 p.m. in New York after earlier declining to 51.76 cents, according to data compiled by Bloomberg. The yield on the bonds jumped 33 basis points, or 0.33 percentage point, to 16.81 percent, the highest level on a closing basis since June 2009.