LATAM WRAP-Argentina bonds rally on election result
By Paul Kilby
NEW YORK, Oct 26 (IFR) - Argentina remained front and center on Monday as the country's bonds rallied amid hopes that a business-friendly candidate might win the run-off presidential election next month.
The country's bond prices were off their highs by late afternoon but still several points above where they closed on Friday.
"This is a real game-changer," one trader told IFR. "It offers the possibility to change a Peronist government that has held power for so long."
The stronger-than-expected support for market favorite Mauricio Macri in Sunday's first-round vote surprised a buyside that had largely been pricing in a more favorable outcome for the ruling party's Daniel Scioli.
Bonar 2024s were closing around 105.50-105.90, up a good four points, while the dollar Discounts were ending the day some 3.5 points stronger at 108.00-110.00, according to one trader.
It was a similar story for quasi-sovereign names such as oil company YPF, whose 2024s hit a high of around 99.75 only to fall back to 99.25 - still three points higher on the day.
Meanwhile in the province of Buenos Aires - where Macri's candidate won the race for governor - the 2021s rallied about five points on Monday to peak at 101.00.
Yet while the tight race has bolstered sentiment toward the South American nation, investors realize that whoever wins the presidency will face significant challenges once in office. Continuación...