We've been on watch here for a few days now. We get the confirmation that the US is coming and intervening in these markets. What do we know so far. So we know what Besson tweeted, right.That they finalized talks for this 20 billion swap line, which the Argentine economic team has been in DC for a few days discussing. I think they flew in Friday and he also made this, I think, a bit surprising and extraordinary step to say we we stepped into currency markets and bought pesos directly, which I think caught e ...

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].

Core Insights - The US is planning to extend a $20 billion swap line to Argentina, which is expected to provide significant financial support to the Argentine government [1] - The potential deal may also include the US purchasing Argentine foreign bonds, further aiding the country's financial stability [1] - Market reactions indicate that this potential support is already positively impacting Argentine markets and assisting President Javier Milei [1] Financial Support - The proposed $20 billion swap line is aimed at bolstering Argentina's financial position amid economic challenges [1] - The involvement of the US in potentially buying foreign bonds signifies a strategic move to stabilize Argentina's economy [1] Market Impact - Hans Humes, CEO and Chairman of Greylock Capital, notes that the anticipation of this deal is already boosting market confidence in Argentina [1] - The positive market response reflects investor optimism regarding the financial support from the US [1]