Argentine sovereign bonds jumped to 3 year-high as peso collapses to record low

The average yield spread of Argentine sovereign dollar bonds over safe-haven US 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 US Treasuries on the JP Morgan EMBI Global Diversified index leaped 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.

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