Core Insights - Argentina's dollar bonds experienced a significant increase following President Javier Milei's unexpected strong performance in legislative elections, alleviating investor concerns regarding his economic reforms [1][2]. Group 1: Election Results - With over 90% of ballots counted, Milei's party secured 41% of the votes, winning 64 out of 127 seats in the lower house and 13 out of 24 Senate seats, surpassing market expectations of around 30% [3]. - The peso showed gains in the crypto market as election results were announced, indicating positive market sentiment [3]. Group 2: Market Reactions - Dollar notes due in 2035 rose more than 13 cents, reaching a record 70.34 cents on the dollar, leading gains among emerging-market bonds [2]. - Fund managers anticipated a rally in assets, with expectations that dollar bonds would lead the recovery, while local bonds were also expected to perform well [5]. Group 3: Political Implications - Milei's victory provides the political capital necessary to accelerate structural reforms in Argentina, as noted by Alejo Czerwonko from UBS Global Wealth Management [4]. - The election results are expected to bolster confidence in continued support from the US, following a $20 billion swap line agreement with Argentina's central bank [4].