Argentine Debt Rises Out of Distress Territory on Milei Reforms

Investors are no longer betting Argentina is heading inevitably to default as President Javier Milei wins over bond markets with his plans to remake South America’s second-largest economy.

The extra-yield investors demand to hold Argentine paper over similarly dated US Treasury yields closed below 10 percentage points, a level that traditionally signals distress, according to data from JPMorgan Chase & Co. The spread is at its lowest levels since August 2019, when former President Mauricio Macri was in office.

Fixed-income investors have enthusiastically lent their support to Milei’s ambitious reform agenda in recent months. Prices for some of Argentina’s sovereign ...