"The strong show of support for President Javier Milei from US Treasury Secretary Scott Bessent - first by pledging to use "all options," and then by announcing a plan to potentially provide a $20 billion lifeline and buy Argentina's bonds - quickly halted a rout that was burning through the government's reserves as it fended off a run on its currency."
"Whether the money materializes or not, investors said the prospect alone will likely be enough to put a floor under Argentina's stocks, bonds and currencies ahead of key national elections late next month. That's because few, if any, are willing to stand behind a bearish bet that could get blown up by another US signal of support. "That's an outsized package and coming from Scott Bessent - who understands markets - it should stabilize here,""
US Treasury Secretary Scott Bessent pledged to use "all options" and outlined a plan to potentially provide a $20 billion lifeline and buy Argentina's bonds. The pledge reversed a market rout that was depleting government reserves and defending the currency. The prospect of US support is likely to put a floor under Argentina's stocks, bonds and currency ahead of national elections, because few investors will short against possible further signals of US backing. Traders compared the potential intervention to past international rescues. Political scandals and voter anger at spending cuts have raised doubts about reform durability under President Javier Milei.
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