Argentina country risk falls below 500 basis points

Argentina's country risk index, measured by JP Morgan, has fallen below the 500 basis point threshold, reaching its lowest level in approximately two weeks. This decline is driven by a recovery in sovereign bonds, including both Global and Bonares, which have shown positive performance in both local and international markets.

The improvement follows recent diplomatic signals from the United States. U.S. Treasury Secretary Scott Bessent expressed support for the administration of President Javier Milei, stating that Argentina “is leading a historic opportunity in the Western Hemisphere.” Bessent also met with Economy Minister Luis Caputo to discuss economic directions.

While sovereign debt has seen a rebound, the local stock market has experienced mixed results. Many Argentine ADRs on Wall Street, particularly in the energy and construction sectors such as YPF and Cresud, have faced selling pressure. However, analysts suggest that sustained levels below 500 points could provide greater consistency to the recent market rebound.