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Celebratory scene in Buenos Aires financial district as Argentina's country risk drops to 513 basis points, lowest in over seven years, amid Central Bank reserve gains.
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Argentina's country risk drops to 513 points, lowest in seven and a half years

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Argentina's country risk, as measured by JP Morgan, closed on Monday, January 26, 2026, at 513 basis points, its lowest level since mid-2018. This 2.5% drop from Friday stems from the Central Bank's reserve accumulation exceeding US$1 billion in January. Markets view these developments as signs of improved financial solvency.

Union Bank of India has approved a plan to raise up to Rs 20,000 crore through long-term bonds. The funds will support infrastructure and affordable housing projects. The bank also plans to issue up to Rs 5,000 crore in green or sustainable bonds, with some fundraising targeted before March 31, 2026.

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The Putnam Core Bond Fund Y share class returned 1.07% in the fourth quarter of 2025, slightly trailing its benchmark, the Bloomberg US Aggregate Index, which gained 1.10%. Gains in mortgage credit sectors helped offset broader market uncertainties. The commentary highlights stable economic indicators supporting bond markets.

The Argentine government paid US$4200 million to bondholders, leaving just over US$100 million in its account, according to private surveys. In parallel, it conducted a debt auction that covered 98% of its maturities, though with interest rates reaching 49%. This operation marks the first local placement of the year.

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British bank Barclays has warned in a report that China Vanke's offshore bondholders could recover less than 1 per cent of their principal in a worst-case scenario, due to uncertainties in restructuring priorities and asset access. In a base case, recoveries might stand at just 10.1 per cent, about half of what distressed market prices imply.

Argentina's Country Risk Index fell on December 3, closing at 639 basis points according to JP Morgan's EMBI. This 5-point drop from the previous close signals growing confidence in sovereign bonds. The positive trend aligns with the recovery of dollar-denominated assets.

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Prime Minister Sanae Takaichi's government plans to issue a record amount of new bonds to fund its economic package. The supplementary budget totals about ¥18.3 trillion ($117 billion), with ¥11.7 trillion covered by additional bond issuance. Concerns persist over public finances amid rising yields.

 

 

 

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