BUENOS AIRES, Aug 10 (Reuters) - Argentine bonds traded at a two-month high on Monday after party primary results showed ruling party candidate Daniel Scioli would struggle to win in the first round, meaning a run-off was likely against his more business-friendly rival.
Argentina’s defaulted 2033 U.S. dollar Discount bonds rose 1.41 percent to 100.842, Thomson Reuters data showed, their highest level since June 17.
U.S dollar-denominated Par bonds due in 2038 climbed 0.6 percent to strike a two-week high of 58.800 before easing off slightly.
“Bond prices will continue to rise as the market views positively the likely ballotage between Scioli and Mauricio Macri,” said Jorge Piedrahita, chief executive of brokerage firm Torino Capital.
Argentina’s primaries provide an accurate account of public opinion ahead of the first round of the election on Oct. 25, with voters able to nominate a candidate across party lines.
With 88 percent of votes counted, official results showed Scioli and the ruling Front for Victory winning 37.90 percent while Macri’s Let’s Change alliance secured 30.62 percent of votes.
Reporting by Sarah Marsh and Richard Lough; Editing by Bernadette Baum