Argentine financial assets surged on Monday, with stocks rising the most in six months, international bonds up over 6 cents, and the peso strengthening after U.S. pledged full support for Argentina’s government ahead of key elections. Bessent mentioned “all options” on the table for stabilizing Argentina, including direct currency purchases.

Following Washington’s support announcement, Argentine markets rebounded significantly after weeks of decline. An index of Argentine stocks in U.S. exchanges rose 14%, with the removal of export taxes on grains aiming to boost sales and dollar supply. The 2046 sovereign bond rose 8.3 cents and the peso strengthened by 4.7%.

Experts speculate whether U.S. support and export tax removal will provide a temporary relief for Argentina, with yields still high and concerns over Milei’s ability to navigate economic challenges. The potential support may offer breathing room for fundamental reforms, but market testing of currency regime viability and difficult adjustments may be necessary.

Read more at Yahoo Finance: Argentina markets soar after US Treasury pledges support