Halister News

(Bloomberg) -- Peso denominated bonds continue to be seen as one of the most attractive deals on the street, which has failed to materialize into actual inflows.

• ARS remains confined within 16-16.18 range since May 19 despite reiterated views of its high yield sovereign bonds to be an invitation to an easy gain due to its reduced political risks
• Morgan Stanley also recommends jumping into Argentinian bonds as bank is bullish on emerging-market local rates, currencies and sovereign credit for 2H
• Uncertainty tied to Brazilian economy outlook hit by numerous political scandals and BCRA potential return to FX market as USD buyer continues to be main hurdles to keep investors to actually becoming long ARS
• NOTE: Davison Santana is an FX strategist who writes for Bloomberg. The observations he makes are his own and not intended as investment advice.
• Some information comes from FX traders familiar with the transactions who asked not to be identified because they are not authorized to speak publicly

To contact the reporter on this story: Davison Santana in Sao Paulo at dsantana6@bloomberg.net To contact the editors responsible for this story: Rita Nazareth at rnazareth@bloomberg.net Andres R. Martinez