Argentina’s Economy Ministry has already spent an estimated $280m in the last two weeks buying back debt in a bid to boost prices and stave off fears that a new default may be brewing. Now it will launch a new phase of the buyback operation: surprise auctions, announced 24 hours in advance. The first is expected in the second half of the week. The economy ministry will announce how much it plans to spend and which short- to medium-term bonds it is targeting, and the market will submit offers.

The new mechanism, which is expected to continue until the end of the year, should bring welcome transparency and save money, but the market remains edgy. Short term bond prices have recovered since the buybacks started but dealers say longer-term debt has not.