Argentina Bonds Drop to Record as Faster CPI Swells Debts
- Argentina’s sovereigns sink to lowest since issuance in 2020
- 5Y CDS hit highest since 2005 last week as default fears mount
Alberto Fernandez, Argentina's president, right, and Cristina Fernandez de Kirchner, Argentina's vice president, attend the 100th-anniversary event for state-owned YPF at the Tecnopolis in Buenos Aires, Argentina, on Friday, June 3, 2022.
Photographer: Pablo E. Piovano/BloombergArgentina’s sovereign bonds fell to a record low Wednesday, extending a two-week slump as faster inflation swells the government debt burden, foreign currency reserves decline and investors unload risk assets worldwide.
The nation’s $16.1 billion in dollar-denominated bonds due 2030 slid 0.3 cent to about 25 cents on the dollar, the lowest since they were issued almost two years ago. Spreads over US Treasury yields surged to their widest since the nation exited default in 2020, up 280 basis points this month to 2,200 points, according to a JPMorgan index.