Argentina Bonds/Currency Tumble As Delegation Snubs Mediation

With 2 days until the 30-day grace period for 'negotiating' the already defaulted upon bonds is over and Argentina is once again dumped from the public markets, the demands for a "continuous mediation" by Judge Griesa appears to have fallen on dear ears. Bloomberg reports that the Argentina delegation will not meet with the mediator today.. and Argentina bonds are tumbling (and CDS soaring). Markets are implying around 45-50% chance of a default being triggered, which, as Jefferies noted last week, seems low. Argentina's black-market peso (blue dollar rate) weakened to 12.75 (just shy of its weakest ever at 13.00) implying a 50% devaluation over the peso.


Cabinet Chief Jorge Capitanich said a delegation won’t meet with a court-appointed mediator until tomorrow even as a July 30 deadline approaches to try and stave off a default.


CDS have surged back to pre-mediation/grace-period levels...


And bond price "hope" is starting to turn to anxiety...


and the currency is tumbling (at 12.75 today)



Charts: Bloomberg


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