Argentina Bonds Jump as Government Stuns Market With $1 Billion Buyback

Argentina’s international bonds leaped to their highest in more than a year after the government said it planned to repurchase about $1 billion of the debt, surprising investors in the cash-strapped country, Bloomberg News reported. The South American nation’s $16.1 billion in overseas bonds due 2030 rose as much as 3.2 cents to more than 36 cents on the dollar, the highest since October 2021, before paring gains. It is those bonds, plus ones maturing in 2029, that the government plans to buy back, Economy Minister Sergio Massa said Wednesday, without giving details. The central bank will lead the process. Argentina’s Economy Ministry is said to be using dollars held by the Treasury to fund the buyback, including money it expects to save from energy imports it presumes it won’t need in 2023, according to people with direct knowledge of the matter. The buyback is seen affecting Argentina’s gross reserves, but not its net reserves, the people said. The buyback would mark the first major action by the government on the country’s global bonds since $65 billion of notes were restructured in 2020. Its bonds have been trading in distressed levels since then, but prices have almost doubled in recent weeks from an October low of 19 cents on the dollar. Read more.