Country risk exploded after the elections: it surpassed 1,000 points and tensions with Milei are growing.

Argentina's Country Risk index climbed above 1,000 points on Monday, reflecting the immediate fall in the price of public debt bonds following the results of the legislative elections in the province of Buenos Aires .

Although President Javier Milei reaffirmed his commitment to the economic program and assured that there will be no change in direction, investors fear that the ruling party will be pressured to increase public spending and face difficulties in meeting debt maturities .

This lack of confidence had already been evident in the run-up to the election , when the JP Morgan index surpassed 900 basis points . This Monday's jump was the scenario financial analysts had predicted in the event of a Peronist victory by more than 10 points , as actually occurred.

While the key election will be on October 26 , which will determine the composition of the National Parliament , the markets interpreted the Buenos Aires result as a warning : the Government could face a much more complex path to implement a "market-friendly" economic program, as it had been promising.

The increase in country risk not only increases the cost of financing, but also fuels doubts about the executive branch's ability to sustain structural reforms amid an adverse political climate.