A rally in Argentina’s international dollar bonds fizzled after U.S. Treasury Secretary Scott Bessent stated the U.S. is “not putting money into Argentina.” Bonds saw a rise of two cents initially but turned negative after Bessent’s comments. The peso is down almost 30% to the dollar year-to-date, with analysts expecting further devaluation after the midterm election.

Argentina needs to commit to a fiscal anchor and consistent monetary policy, says the IMF. Financial markets have fallen amid uncertainty over U.S. backing and concerns over Milei’s reformist agenda after mid-term elections. The U.S. government shutdown and pushback from some Republicans have added to worries about plans for Argentina.

Last month, Argentina temporarily suspended export taxes on grains to secure foreign currency, enabling $7 billion in sales. U.S. Republicans, like Senator Chuck Grassley, expressed concerns over “bailing out” Argentina. Washington’s polarization and market expectations of a devaluation after midterms have led to uncertainty despite U.S. support.

Read more at Yahoo Finance: Argentina’s bonds wobble as investors eye US Bessent’s support pledge