Citi is going long Argentina BONTE 30 after U.S. Treasury intervention

LONDON (Reuters) -Citi said on Thursday it was going long into Argentina's BONTE 30 bonds following intervention by the U.S. Treasury to shore up the country's currency, adding it saw room for local assets to continue gains ahead of a key legislative vote.  "Markets rally not only on the possible future announcement, but on the news that U.S. Treasury intervention has begun," Citi's Ivan Riveros said in a note to clients, noting that the upcoming midterm elections on October 26 still pose a risk. Citi was betting on Argentina's BONTE 30s, the note said, referring to a 30-month note denominated in pesos but subscribed in U.S. dollars.  "While local markets will remain vulnerable to the mid-term election risk, the U.S. Treasury intervention means there will be room for local assets to continue decompressing risk prior to October’s elections," Citi said.  (Reporting by Karin Strohecker; editing by Rodrigo Campos)

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