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Default Jitters Mount in Argentina as Local Yields Top 70%

  • Investors are on edge with government facing key debt auction
  • Domestic bond sales have struggled amid 60% inflation
Argentina's Economy Ministry building in Buenos Aires. 

Argentina's Economy Ministry building in Buenos Aires. 

Photographer: Juan Mabromata /AFP/Getty Images

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Two years after Argentina emerged from its latest default, a debt crisis in brewing once again.

This time, the immediate trouble is in the local bond market, where creditors have become reluctant to roll over maturing government bonds. With spending still high and the leftist government under pressure from the IMF to stop hitting up the central bank for cheap loans to cover its budget deficit, there’s a growing sense in Buenos Aires that officials are running out of financing options and that a local bond restructuring is becoming all but inevitable.