Argentina’s sovereign bonds edged up on Friday after a tumultuous week following the IMF technical mission saying the country would need major debt restructuring amid concerns about default. Local over-the-counter bonds rose an average 1.1%, trimming losses for the week to just 0.5%. A dollar ‘Par’ bond was one of the top performers, up 3.1%. Argentina’s country risk index eased 37 units to 2,055 basis points from almost 2,600 points September.
Argentine bond prices fell 1.3% on Thursday after an IMF technical mission essentially gave the government a green light to restructure about $100 billion in bonds and loans, including $44 billion owed to the IMF. Argentine bond prices are down 4.8% so far this year. Country risk spreads 11EMJ stood 82 basis points wider at 2,117 over safe-haven U.S. Treasury paper, indicating an increase in the perceived likelihood of default.