Bond prices rally before the Primaries

Next Sunday’s primaries could mark a turning point in the Argentine political equation. The government faces a tough challenge in the Province of Buenos Aires in the Congressional elections from their former chief of Cabinet Sergio Massa, who at the moment seems to hold a margin of three to five percentage points in what looks like a very close confrontation.

The final verdict will come at the end of October, in the actual congressional elections, but the primaries can set a trend that can have a significant influence for later on. Massa is an ambitious politician who is likely to follow up good electoral results with a candidacy for the 2015 Presidential race.