Argentina’s bonds, stocks and currency are surging after President Javier Milei’s party won an overwhelming victory in a Sunday midterm election, a key requisite to keep economic reforms on track and a United States financial backstop in place.

On Monday, international bonds rallied between 9 and 13 cents each, local stocks jumped over 20 percent and the peso strengthened some 6 percent to the dollar, halving its initial rally.

Official results in Argentina’s Sunday legislative elections show voters strongly backed Milei’s free-market reforms and deep austerity measures, with inflation falling sharply since he took office nearly two years ago.

The unexpectedly strong showing came after the US pledged a combined $40bn to support Milei – a $20bn central bank swap line and a potential

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