Workflow
Argentina assets rally as Bessent details strong US support
Yahoo Financeยท2025-09-24 15:01

Group 1 - Argentina's financial assets have rallied for three consecutive days following U.S. Treasury Secretary Scott Bessent's announcement of significant support for President Javier Milei's government and markets [1][2] - The U.S. is negotiating a $20 billion currency swap line with Argentina's central bank and is prepared to purchase Argentina's dollar-denominated bonds on the secondary market [1][3] - Argentina's 2030 bond price increased over 4 cents to 75.36 cents on the dollar, while the local stock benchmark rose over 6% in early trading, and the peso strengthened nearly 3% on the day, marking weekly gains above 10% against the U.S. dollar [3][5] Group 2 - Bessent emphasized that the U.S. support for Argentina is unprecedented and represents one of the strongest examples of U.S. Treasury backing in emerging markets history [4] - Prior to this support, Argentina's markets were under significant pressure, with bonds falling as much as 20% for the year and the peso hitting a weak limit, necessitating over $1 billion in central bank interventions [5] - The upcoming legislative midterm elections on October 26 could influence Milei's party's ability to strengthen its position, although the recent U.S. support enhances Milei's negotiating power [4][6]