BUENOS AIRES, Reuters Argentina39;s country risk index, an important reflection of how investors view the country39;s public debt, closed on Tuesday slightly below the previous day39;s close, after a steep fall earlier in the day surprised officials and analysts.

The closely watched J.P. Morgan risk benchmark, which shows the yield spread on Argentine sovereign government bonds versus comparable U.S. debt, closed at 561 points, after plummeting earlier to 444, its lowest level since 2018.

While Argentina39;s government shoulders massive liabilities, markets have recently cheered cooling inflation and early signs of an economic rebound following years of a deep economic slump.

According to traders, the index reading was adjusted due to technical issues that had caused the steep slide and were related to key bond payments expected later this week.

Argentina is set on Thursday to pay off 4.3 billion in principal and interest on its Bonares and Globales bonds.

Earlier on Tuesday, Felipe Nunez, an economist at Argentina39;s Treasury, wrote on social media that the index showed a mismatch in the price due to coupon payments and amortization of the bonds.

The country risk index has been falling due to rising optimism in Argentine financial markets, and broke the 600point threshold on Monday.

Argentina39;s falling country risk reflects optimism in the country39;s financial markets under President Javier Milei, who took office in late 2023 and has implemented a costcutting…