(Corrects throughout to clarify fall in Boden 2015 price quote)
By Davide Scigliuzzo
NEW YORK, March 31 (IFR) - Argentina’s sovereign bonds fell on Tuesday following Clearstream’s announcement that it had suspended settlement of any security in the Argentine market, according to traders.
Bonar 2024s and Bonar 2017s slid by around a point on Tuesday after being quoted at cash prices of around 104.50 and 98.00 respectively at the close on Monday.
Argentina’s local-law Boden 2015 were quoted at a cash price of around 97.00, but the vast majority of the difference with Monday’s level of 100.75 is because traders adjusted quotes ahead of the instrument’s last ever coupon payment on April 3.
Monday’s level on the Boden 2015 priced in the prospect of receiving coupons, while today’s quote was “ex-coupon” or excluded interest payments.
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 and Shankar Ramakrishnan)