Argentina debt rollover and rating upgrades

In mid‑July 2026 Argentina’s Ministry of Economy completed a large peso‑debt auction, rolling over roughly $5.44 trillion of liabilities and issuing a new dollar‑denominated bond (AO29) due 2029 that attracted $470 million at an 8 % nominal rate. The auction was well received, lifting the Merval and narrowing the country‑risk spread.

A second auction later in the month broadened the rollover to 144.5 %, with bids of 13.98 trillion pesos and awards of 12.21 trillion pesos, fully covering the approximately 8.5 trillion pesos of bonds maturing that day. Net financing from the auction amounted to about 3.76 trillion pesos, extending the average portfolio duration by 0.92 years and pushing 5.5 trillion pesos of maturities out to 2028. The Treasury also secured an additional US$309 million through the AO29 dollar‑linked bond, priced at an 8.33 % TIREA (8.02 % nominal) within a US$2 billion cap.

In the week that followed, Moody’s upgraded Argentina’s sovereign rating from Caa1 to B3 for both local‑ and foreign‑currency obligations and raised Buenos Aires city’s credit rating from B2 to B1, the highest sub‑national rating in the country. The agency cited tighter fiscal discipline, robust liquidity, reduced financing needs and the reforms of President Javier Milei. Market reaction included a fall in the country‑risk indicator to roughly 410–437 basis points—the lowest in over eight years—supporting a modest rise in sovereign bond prices and paving the way for a potential return to international capital markets.

The next domestic debt auction is scheduled for 12 August.