Election Fears Draw Inverted Yield Curve Argentine Style
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Argentina’s sovereign yield curve just inverted as a rampant dollar and heightened election concerns led investors to ditch the nation’s short-term debt.
The yield on the nation’s dollar bonds due 2021 jumped 242 basis points on Wednesday to a record high of 16.85 percent on concerns former President Cristina Fernandez de Kirchner may return to power in October’s election. A rally in the dollar, which caused a bloodbath in emerging-market currencies, did nothing to help.