Argentina Peso Bond Puts Balloon, Spurring Inflation Risk

Puts on Argentina’s peso debt issued by the central bank have surged under Javier Milei’s government, reaching a record and prompting officials to scale back their use amid growing investor concern.

The puts — pledges to buy back the notes if they fall below a certain price — have been in use in the South American nation for years to increase the appeal of the bonds at regularly scheduled auctions. They’ve shot up to 16.3 trillion pesos ($19.5 billion) as of Thursday, up by 11.3 trillion pesos since Milei took office just three months ago, according to estimates by ...