Argentine dollar bonds plunged, President Milley suffered defeat in the Buenos Aires province elections.

Argentinian US dollar bonds fell sharply on Monday as President Javier Milei failed in a crucial provincial election, deepening concerns about whether his economic agenda can gain political support. Sovereign bond prices fell across the board, with the 2035 maturity bond trading at 56.74 cents on the dollar, down 4.9 cents. The bond performed the worst among emerging markets. In Sunday's Buenos Aires elections, Milei's party performed well below expectations, trailing the left-wing Peronist opposition by about 13 percentage points in the 91% of votes counted. The election results disappointed investors, who had expected that a gap of over 5 percentage points could trigger a sell-off of the country's assets.