Sovereign bonds recover from IMF blow, up 1.1% and 3.1% on Friday

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 bonds take it on the chin after IMF green light

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.