Argentina bonds, peso extend rally with eyes on US support details

Group 1 - Argentina's international bonds and stocks experienced significant gains ahead of a meeting between U.S. President Donald Trump and Argentine President Javier Milei, with dollar bonds rising as much as 2.3 cents before settling up more than 1 cent on the dollar [1][2] - U.S.-listed shares of Argentine companies saw notable increases, with Banco BBVA Argentina rising 6%, Grupo Financiero Galicia up 2%, and YPF gaining 2.5%, following a 15% gain in an index of Argentine stocks on U.S. exchanges [2] - The Argentine peso strengthened nearly 5% against the dollar, reversing a previous decline after the central bank depleted over $1 billion in reserves to defend the currency [2] Group 2 - Investors are speculating on the nature of U.S. support for Argentina, with suggestions that a loan tied to future U.S. investments may be more realistic than direct currency purchases or a swap facility [3] - Argentina has renewed a $5 billion swap line with China's central bank, part of an $18 billion facility that has helped bolster reserves but has drawn criticism from Washington [3] Group 3 - Financial assets in Argentina have been volatile, with international bonds down nearly 10% for the year, amid concerns over President Milei's ability to implement reforms due to corruption allegations and electoral losses [4][5] - Despite recent market declines, investor sentiment had improved since Milei's presidency began in December 2023, driven by his ambitious reform agenda [4]