Core Viewpoint - The US is negotiating a $20 billion swap line with Argentina and is prepared to purchase the country's dollar bonds, providing support to President Javier Milei ahead of critical midterm elections [1][3]. Group 1: US Support and Market Reaction - The US Treasury is in discussions with Argentine officials regarding a $20 billion swap line with the Central Bank to mitigate excessive market volatility [3]. - Following the announcement of potential US support, Argentina's markets have reacted positively, with the peso appreciating by 2.4% and dollar bonds increasing in value, particularly those maturing in 2035 which rose by approximately 4 cents [3]. - The support is seen as a crucial measure to stabilize the economy and restore confidence in the Argentine market, especially after recent electoral setbacks for Milei [4]. Group 2: Economic Implications - The willingness of the US Treasury to directly purchase Argentine sovereign debt is expected to lower country risk, potentially allowing the government to issue new debt by early 2026 [4]. - An Argentine official views this support as an opportunity for Milei to adjust currency policy, enabling the central bank to rebuild its foreign reserves, which have been significantly depleted [6]. - The recent economic challenges faced by Argentina are attributed to historical mismanagement, which continues to influence market perceptions [5].