Argentina’s dollar bonds bounced as much as five points this week as investors were finally tempted to nibble at the distressed levels on offer. But analysts warned that the capital controls imposed by authorities would provide only short-term relief.
The sovereign’s 5.875% 2028s hit a nadir of 36.75 on Tuesday, the first day of US trading after the Labor Day holiday. Argentina’s central bank had announced some capital controls on Sunday in an effort to prop up the currency.
“The introduction of capital controls is clearly a response