UPDATE 2- Argentine bonds soar on greater risk appetite
BUENOS AIRES, Sept 15 (Reuters) - Argentine bonds closed 3.9 percent higher on average in over-the-counter trade on Tuesday as demand from foreign investors rose due to an increased global appetite for risk.
The J.P. Morgan Emerging Markets Bonds Index 11EMJ, which measures the spread between the country's benchmark bonds and comparable U.S. Treasuries, was last down 60 basis points at 749, its lowest in 12 months.
Rising demand among institutional investors and other official organizations has contributed to the recent rise in Argentina's sovereign bonds, traders said.
Optimism about the global economic outlook has also prompted investors to shun safe-haven assets such as the U.S. dollar and U.S. Treasuries in favor of stocks, commodities and foreign bonds.
Most of the rally in Argentine debt was concentrated in the dollar-denominated Boden 14 bonds ARBODEN14D=RASL, which were up more than 10 percent in afternoon trade on Tuesday to an ask price of 27.30, and on peso-denominated 'Par' bonds ARPARP=RASL, which were up 3.3 percent to an ask price of 28.10 in over-the-counter trade in Buenos Aires. (Reporting by Jorge Otaola; Writing by Vivianne Rodrigues; Editing by Dan Grebler)
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