The extra yield investors demand to own Argentine debt instead of U.S. Treasuries rose 24 basis points, or 0.24 percentage point, to 871 basis points at 4:37 p.m. in New York

Bloomberg

Argentina’s Dollar Bonds Tumble After IMF Threatens Censure

 

Tuesday, September 18, 2012

 

By Katia Porzecanski and Camila Russo

 

Argentine government bonds tumbled the most in three months after the International Monetary Fund said the country is on track to becoming the first nation ever censured for reporting inaccurate economic data.

 

The extra yield investors demand to own Argentine debt instead of U.S. Treasuries rose 24 basis points, or 0.24 percentage point, to 871 basis points at 4:37 p.m. in New York, according to JPMorgan Chase & Co.’s EMBI Global index. Dollar- denominated bonds due in 2017 plunged 1.76 cents to 97.93 cents on the dollar for the biggest loss since June 11.

 

The IMF’s board of directors, meeting yesterday in Washington, decided to give the country until Dec. 17 to respond to concern about the quality of its official data, according to a statement today. If the deadline is missed, the board can issue a declaration of censure, which means sanctions may be applied if the concerns aren’t addressed.