Argentine bonds slip on JP Morgan view, peso firms

viernes 28 de marzo de 2008 18:17 ART

(Updates with market close, farm strike lifted)

BUENOS AIRES, March 28 (Reuters) - The Argentine peso firmed on Friday, snapping a three-session losing streak on signs that a farmers strike would end, but bonds slipped after JP Morgan recommended selling Argentine debt, traders said.

After the close of the markets, Argentine farming leaders called off their 16-day strike to start negotiations with the government.

In informal trade between foreign exchange houses, as measured by Reuters, the peso ARSB= firmed 0.39 percent to 3.1825/3.1850 per dollar, after three days of losses because the farm strike pinched the supply of dollars to the market.

In formal interbank trade, where the central bank regularly intervenes, the peso closed stable at 3.1625/3.1650 ARS=RASL.

"The market is adjusting to signs of the farmers ending the strike and exports pumping dollars in the market anew," a currency trader said.

On the bond market, government debt prices <AR/BONOS> fell 0.7 percent on average after investment bank JP Morgan recommended late on Thursday selling Argentine bonds due to the farm protest.

The losers were led by the peso-denominated Boden 2014 bond, which shed 1.4 percent, and the same bond denominated in dollars, which dropped 1.2 percent.

JP Morgan adjusted its portfolio, selling 3 million Bonar bonds maturing in 2011 at $91.50. For details, see [ID:nN27453765].   Continuación...