Argentina’s Bond Rally Limited by Junk Label, War Fallout (2)

As President Javier Milei meets investors in New York in a bid to attract interest in Argentina’s comeback story, the momentum behind the country’s bonds has largely stalled.

For all the wins — his administration has a hold on inflation, is rebuilding central bank reserves and loosening currency controls; it just approved a long-awaited labor reform — Argentina’s bond spreads to benchmark US Treasury yields are still about twice where Milei wants it to be. They fell to a multi-year low in January but have since rebounded, with the rally fading even before the conflict with Iran erupted ...