Argentinian bonds fall 4% on Wall Street as financial tremor continues due to Silicon Valley Bank collapse

Argentinian markets fell generally on Monday due to a strong wave of selling, in line with the collapse of external markets after speculation with larger increases in US interest rates due to data on the job.

The collapse of the American Silicon Valley Bank and the announcement this weekend of a rescue plan for depositors aroused the attention of investors, but failed to calm the indices. Oil prices fall by more than 3% and goods farms lost nearly 1% on Monday.

After plunging 4.8% on average on Friday, bonds Global – in dollars with foreign law – further down 4% on average on Wall Street. The Global 2030, the stock where the official debt buyback plan was focused, subtracted 4.1% and accumulated a decline of 16% last month.

He countries at risk measured by JP Morgan bank, it increased by 58 whole numbers for Argentina, to 2,338 dots basic, a maximum since November 28 of last year. Global rating agency S&P has reduced Argentina’s local currency debt to “SD/SD” (selective default) from “CCC-/C”.

Argentinian assets are hurting amid a challenging global backdrop after a US jobs report showed the US economy added jobs at a solid pace in February, which would help the fed (US Federal Reserve) to raise rates longer.

Markets continue to evaluate a plan to support all depositors of the failed Silicon Valley Bank and make additional funds available to other banks. But profits have been limited as financial stocks have continued to fall since last week. Bank stocks were under pressure on Monday, with JPMorgan Chase and Citigroup in autumn. Regional banks fell further, led by a 60% loss at First Republic.

All the Silicon Valley Bank depositors will have access to their money starting Monday, according to a joint statement from the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corporation. Additionally, regulators shut down Signature Bank, a major cryptocurrency lender, in a bid to prevent the banking crisis from spreading.

The Federal Reserve also announced the creation of a new Term Financing Program bank intended to protect deposits. It will offer loans of up to one year to banks, savings associations, credit unions and other institutions.

“In any case, the rate of return of the treasures The US 10-year bond is trading lower at the 3.7% level, on concerns over the shutdown of Silicon Valley Bank, which has prompted a flight to safer assets,” the experts at Search for merchants.

On Tuesday 14, retail price inflation data for February will be released. On Wednesday, the installed capacity utilization of industry for January will be announced, and the synthetic indicator for utilities for December 2022. And on Thursday, the basic food basket and the total for February will be announced.

The ministry of The economy traded 4.34 trillion last week pesos (some 21,660 million USD at the official exchange rate) of domestic debt, which implied a membership of 64% of the securities offered in two options redeemable in 2024 and 2025.

“According to market estimates, around 30% of private holdings would have entered. This operation was supported by banks and other private investors. However, other institutional investors and corporate treasuries did not enter due to their short-term investment horizon,” they have since commented. Delphi investment.

Meanwhile, domestic prices have readjusted lower in response to a giant debt swap the government carried out to ease short-term maturities in a complex presidential election year. Pressure to devalue the peso continued, reflected in the share price.

YPF plans to double oil production and increase natural gas production by 30% over the next five years, said the state oil company’s chief financial officer, Alexander Lew.

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