Argentina’s bonds, stocks and currency surged on Monday after President Javier Milei‘s party won an overwhelming victory in a Sunday midterm election, a key requisite to keep economic reforms on track and a U.S. financial backstop in place. International bonds rallied between 10 and 15 cents each, local stocks jumped over 20 per cent and the peso strengthened more than 10 per cent to the dollar, setting up for one of its strongest sessions on record. Official results in Argentina’s Sunday legislative elections show voters strongly backed Milei’s free-market reforms and deep austerity measures, with inflation falling sharply since he took office nearly two years ago.
The unexpectedly strong showing came after the U.S. pledged a combined $40 billion to support Milei- a $20 billion central bank swap line and a potential $20 billion loan facility – and implied the backing was contingent on Milei’s reform agenda.
Argentina’s assets have…
