Argentina Country Risk Drops to 485 Points

Argentina's country risk index dropped 6 basis points to close at 485 points, down 1.2% according to Rava screens. The measure reached its lowest level since 17 August, when it touched 489 before climbing past 500 the following day. Over the past two weeks, the index fell 27 units or 5.3%, reversing an increase of 39 units over the same period last month.

Sovereign bonds closed mixed. Local-law AL29D and AL41D bonds gained 0.2%, while the AE38D declined 0.6%. Among Global bonds, the GD30D rose 0.1% and the GD46D lost 0.9%. Argentine debt averaged a 0.4% daily rise, trimming its weekly decline to 0.3%. Javier Giordano, an economist at CFA, noted on X that the international backdrop supported emerging markets as the EMB gained 0.2% and the US 10-year Treasury yield slipped 1 basis point to 4.95%.

Fernando Camusso, director of Rafaela Capital, warned that the global funding context could become more difficult if the Federal Reserve raises interest rates. Argentine shares traded lower in New York, where Loma Negra dropped 3.5%, while Transportadora de Gas del Sur, Cresud, and BBVA each slid 3.2%. Globant gained 2.9%. In Buenos Aires, the S&P Merval slipped 1.9% to 3,098,898 units, or $1,932 adjusted for the CCL exchange rate, though Portfolio Personal Inversiones noted it finished the week up 2.6%.

In currency markets, the wholesale dollar fell $4.50 or 0.3% to $1,508.50, remaining 20% below the upper currency band limit of $1,894.30. Gustavo Quintana, a currency trader at PR, noted the wholesale rate rose $0.50 over the week. The retail rate at Banco Nación closed at $1,530, while the central bank's average official rate finished at $1,531.73. The MEP dollar ended at $1,538.16 and the CCL closed at $1,604.35.