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Bond Traders Lock In Argentina's 31.5% Yields as Rate Cuts Loom

  • Economic slump may lead central bank to lower borrowing costs
  • Policy makers have boosted key rate to curb inflation
Updated on

Argentina has ratcheted up interest rates above 30 percent to combat inflation, but the moves may prove short-lived amid growing concern that high rates are holding back South America’s second-biggest economy. 

That means investors should favor the central bank’s longest-dated notes -- so-called Lebacs that mature in about eight months -- to lock in yields of 31.5 percent, say Balanz Capital and Delphos Investment.