Argentina Runoff Is Investors’ Worst-Case Scenario for Bonds

Wall Street is bracing for more losses on Argentina’s sovereign bonds after Sunday’s presidential ballot sent the contest to a second round between Economy Minister Sergio Massa and libertarian outsider Javier Milei — the scenario that investors had feared most.

Massa, part of the ruling Peronist government, surprised pundits by taking roughly 37% of the vote, according to a nearly complete tally. That will force a head-to-head match-up next month with Milei, who got 30% after gaining attention with a plan to dollarize the economy. Center-right candidate Patricia Bullrich came in third. The results mark a reversal of fortunes for ...