Argentina’s sovereign bonds rose after local media reported late on Wednesday that the lower house speaker, Sergio Massa, could be appointed the country’s new economy minister.
The nation’s dollar bonds, which mature in 2029, rose 1.8 cents to about 22 cents on the dollar, the highest in more than three weeks, according to data from Bloomberg. Benchmark bonds maturing in 2030 rose 1.6 cents to about 21.4 cents on the dollar.
Massa, if confirmed, will be Argentina’s third economy minister in less than a month, replacing Silvina Batakis, who assumed the position on the 4th July, following the surprise resignation of her predecessor Martín Guzmán. The Argentine Bonds hit lows last week amid uncertainty over the country’s political direction, which has been troubled by inflation rising to 64% and a shortage of international reserves.
“We believe that the market’s positive reaction to the potential cabinet appointment of Sergio Massa is based on the expectation that he will implement some stabilising measures, including a peso devaluation and fiscal tightening, that will be positive for the credit, said Marcos Buscaglia, founder of Buenos Aires-based consultancy Alberdi Partners.
Massa said on Twitter that whilst he has seen many “rumours,” he has not had any offers, but that he hoped to speak with President Alberto Fernández between Thursday and Saturday.
by Bloomberg / Scott Squires & Ignacio Olivera Doll