By Rodrigo Campos and Libby George NEW YORK/LONDON (Reuters) -Argentina's international dollar bonds rose in a volatile session on Thursday after U.S. Treasury Secretary Scott Bessent said the U.S. is "not putting money into Argentina" shortly after saying that upcoming in-person discussions in Washington would "meaningfully advance" the country's pledge of financial support for President Javier Milei's government. The peso was little changed throughout the day at about 1,424 per dollar, hinting at int ...

By Rodrigo Campos and Libby George NEW YORK/LONDON (Reuters) -A rally in Argentina's international dollar bonds fizzled on Thursday after U.S. Treasury Secretary Scott Bessent said the U.S. is "not putting money into Argentina" shortly after saying that upcoming in-person discussions in Washington would "meaningfully advance" the country's pledge of financial support for President Javier Milei's government. Bonds, which rose roughly two cents after Bessent's initial comments, traded negative shortly af ...

Core Viewpoint - Argentina's recent engagement with the United States presents a significant opportunity to overcome its history of debt defaults and financial instability, contingent on the outcome of the upcoming nationwide elections in October [1]. Group 1: U.S. Support and Market Reaction - Argentine assets experienced a surge following U.S. Treasury Secretary Scott Bessent's statement indicating that "all options" were available to stabilize the country and support President Javier Milei [2]. - The U.S. intervention helped reverse a market decline caused by Milei's party's poor performance in the provincial elections, raising concerns about potential setbacks to his reform agenda [3]. - This unprecedented support from the U.S. is viewed as a crucial factor in addressing Argentina's financial challenges, although the sustainability of this support is tied to the election results [4]. Group 2: Economic Measures and Investor Sentiment - Bessent announced a support package that includes a $20 billion swap line, U.S. purchases of Argentina's dollar-denominated bonds, and standby credit from the Exchange Stabilization Fund [6]. - The clarity of terms and conditions remains uncertain, but the strong U.S. signal is seen as a vital factor in navigating a challenging economic period [7]. - Historical context shows that Argentina has previously disappointed investors, as seen in 2017 when optimism surrounding reforms led to significant investments, only for the country to default again by 2020 [8].

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]