Rising US Wholesale Inflation Hits Bonds: How It Could Affect the $1 Billion Repo

Local newspapers like the GD35D fell 3.55%, but the Global 2030 (GD30D), with which the Economy is seeking to carry out the operation by pledging them, lost 2.8%

Traders at New York Stock Exchange (NYSE) on Wall Street
Traders at New York Stock Exchange (NYSE) on Wall Street

The news that mass inflation in the United States was higher than estimated: strong impact on bonds of emerging countries and those of Argentina, given the sharp rise in US Treasury yields. The 10-year stock is now yielding 3.84%. This rate becomes a vacuum of global dollars.

The free dollar was left at $377 for sale

The currency traded on the parallel market reduced its selling price by one peso, to 377 units. So the free dollar four pesos remain below January’s closing values. So far in 2023, the “blue” dollar has seen an increase of 31 pesos or 9%, virtually the same as inflation for the period.

The dollar counted with liquidation rose three pesos to $371 while the MEP also increased three pesos to 358 units.

He central bank He sold another $46 million on the market and extended the losing streak to 17 straight rounds. The board of directors has decided not to raise the benchmark interest rate. It racks up a sales balance of $854 million in February.

He S&P Merval it rebounded and rose 1.4%. The country risk climbed by 1.4% and reached 2,024 points. THE Sovereign bonds in dollars they are not stopping the downward trend and so far this month they have already racked up losses of up to 14%.

Financial day: Tourist dollar hit $400 and BCRA extended market sell-off streak

The free dollar fell one peso to $377. The BCRA sold 46 million USD to the MULC and chained 17 rounds with a negative balance. Dollar bonds fell 2.7% and country risk rose to 2,056 basis points

As stocks hold, bonds adjust their prices.
As stocks hold, bonds adjust their prices.

The Central Bank’s loss of reserves had its impact on the stock market on Thursday, where dollar bonds fell sharply on doubts about Argentina’s weak economy. At the same time, from the “tourist” dollar, it sets a precedent, when paid in some banks above the barrier of 400 pesos.

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