August 30, 2018 / 2:51 PM / a year ago

Argentine bond spread jumps to Jan 2015 highs as peso collapses

LONDON, Aug 30 (Reuters) - The average yield spread of Argentine sovereign dollar bonds over safe haven U.S. Treasuries jumped to levels not seen since January 2015 on Thursday as the Argentine peso collapsed to a record low.

Argentina’s central bank said it had raised the monetary policy rate to 60 percent from 45 percent, in an effort to put a floor under the freefalling currency, which traders said was down over 15 percent to 39 per dollar.

Argentina’s average dollar bond yield spread over U.S. Treasuries on the JPMorgan EMBI Global Diversified index leapt 35 basis points (bps) from Wednesday’s close to 759 bps.

Five-year credit default swaps also jumped 43 bps from Wednesday’s close to 696 bps, according to IHS Markit data.

Reporting by Claire Milhench Editing by Alison Williams

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