Argentina's bonds rise in wobbly session as investors eye US support pledge

Core Insights - Argentina's international dollar bonds experienced volatility following U.S. Treasury Secretary Scott Bessent's comments regarding U.S. financial support for the country [1][3] - The Argentine peso remained stable at approximately 1,424 per dollar, indicating possible intervention from the treasury, while local stocks increased by 2.5% [2] - Argentina's bonds have seen a significant decline of 15% year-to-date, despite a previous rise of over 100% in 2024 [4] Market Reactions - Following Bessent's initial supportive comments, bonds rose by roughly two cents but later traded negatively before closing up over one cent [2][4] - The peso has depreciated nearly 30% against the dollar this year, with expectations of further devaluation post the October 26 midterm elections [5] Economic Context - The IMF emphasized the need for Argentina to establish a fiscal anchor and a consistent monetary policy to support Milei's ambitious reform agenda [6] - The market is currently testing the U.S. government's commitment to assist Argentina, with uncertainties surrounding the details of support and the impact of the U.S. government shutdown [7]