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Argentina’s economy minister Luis Caputo stated that he has “no intention of going to the international market” to raise funding via debt, prioritizing alternative funding sources with lower interest rates. Instead of new bond issuances, the administration is utilizing several strategic financial tools including repos, multilateral support and SDR purchases. Argentina’s President Javier Milei reiterated that a market reentry will only occur to roll over existing maturities, as improving fundamentals should eventually lower sovereign risk. With a $20bn US Treasury swap line acting as a “lender of last resort” as per analysts, they noted that Argentina can afford to wait until its yields align more closely with peers like Ecuador before issuing fresh debt. They added that despite sovereign bond spreads falling to an eight-year low, the government considers current market rates too high for a nation maintaining a fiscal surplus.
Argentina’s dollar bonds were trading stable, with its 4.125% 2035s at 77.6, yielding 9.1%.
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