NEW YORK, March 31 (IFR) - Argentina’s sovereign bonds fell sharply on Tuesday following Clearstream’s announcement that it had suspended settlement of any security in the Argentine market, according to traders.
Argentina’s local-law Boden 2015 were among the hardest hit, dropping by almost four points to a cash price of 97.00 or a yield 13.53%. This compares to Monday’s closing price of 100.75, the equivalent of a much tighter yield of around 5.5%.
Other Argentine bonds such as Bonar 2024s and Bonar 2017s were also lower by around a point on Tuesday after being quoted at cash prices of around 104.50 and 98.00 respectively.
Luxembourg-based clearing house Clearstream said on Tuesday that it had suspended settlement for any security in the Argentine market, after its local custodian Citibank recently lost its ability to provide such services in the South American country. (Reporting by Davide Scigliuzzo; Editing by Paul Kilby)