Milei government pressure increasing day by day, Argentine dollar bonds fall to nearly one-year low.

With increasing pressure faced by Argentine President Javier Milei's government, the country's dollar bonds on Thursday ranked among the worst-performing in emerging markets, facing the possibility of marking the longest continuous decline since April. Investors had originally hoped that next month's midterm elections could boost Milei's support in parliament, enabling him to push forward with economic reform agenda. However, as opposition mounts, the economy shrinks, and a series of political setbacks ranging from corruption scandals to lawmaker obstruction occur, traders have started selling off the country's assets. Milei's veto of two spending bills faced resistance in congress, raising concerns about his ability to garner political support before the voting on October 26, leading to further declines in the country's bonds on Thursday. The 2035 maturing bonds, one of the more liquid varieties, dropped over 3 cents on the dollar, hitting a near year-low and marking a fifth consecutive week of decline. Yields have soared from 10.6% a month ago to over 16.2%.