Argentina Bonds Rise on Brighter Growth Prospects; Stocks Up

The Wall Street Journal

Argentina Bonds Rise on Brighter Growth Prospects; Stocks Up

Wednesday, September 5, 2012

By Shane Romig

BUENOS AIRES--Argentine bonds posted solid gains Wednesday as better economic prospects through the second half of the year stoked buying.

Leading the charge were GDP warrants, which pay out based on economic performance.

The peso-denominated warrants shot up 3.4% to 14.34 pesos ($3.08) as investors bet that the economy would get back on track after stalling during the first half of the year.

Record-high soybean prices and expectations for a bumper crop next year also provided support, said brokerage Banco Piano analyst Alejandro Barros.