Argentine market prices in an "election premium" on bonds

Country risk has surpassed 700 basis points, and bonds maturing after the elections offer significantly higher yields than those maturing sooner. The market is pricing in political uncertainty: those seeking higher returns must accept greater election-related risk.

A wider spread between short-term and long-term bonds signals market apprehension regarding the post-election period. If you hold Argentine bonds in your portfolio, it is worth examining where you sit along the yield curve and what specific scenario must unfold for your position to perform well.