Global market volatility threatens one of Milei’s key goals |
Global financial volatility — and especially the swings in the U.S. Treasury market, the global economy’s bellwether — risks impeding one of the Argentine government’s central goals: a return to international debt markets.
“The current level of long-term U.S. bond yields matters because it marks a shift in the global price of money,” Auxtin Maquieyra, commercial manager at the brokerage Sailing Inversiones, told the Herald.
“When the risk-free rate goes up, every financial asset in the world has to reprice: stocks, corporate credit, emerging-market debt, and sovereign bonds,” he added.
This past week, 10-year Treasury yields hit their highest level since early 2025. The 30-year yield, meanwhile, is at its highest point since 2007, just before the global financial crisis.
The impact on Argentina
Nicolás Kohn, head of wealth management research at the brokerage Balanz, told the Herald that “the global dynamic could have a local impact, mainly through the rise in Treasury yields.”
If that happens, investors would back away from risk assets, which could weigh on the valuations of emerging-market bonds — Argentina’s included.
Maquieyra noted that countries with higher credit risk, like Argentina, “are more exposed, because the rate they have........