He predicts Argentina's economy will grow by 7.5 percent this year, delivering a 4.8 cents payment next year. Holders of the warrants will receive no payment this year because the economy expanded 0.9 percent in 2009 amid a global recession that crimped demand for soybean, wheat and corn exports.

A record 55-million metric ton soybean harvest and a 25 percent increase in auto exports in July from a year earlier prompted Economy Minister Amado Boudou to raise his 2010 growth forecast last week to 7 percent from about 6 percent.

JPMorgan lifted its estimate to 8.5 percent from 6 percent, while RBC raised its forecast to 6.5 percent from 5 percent. Goldman Sachs increased its growth forecast to 8 percent from 5.3 percent.

Bond Yields
The yield on Argentine dollar bonds due in 2017 fell 16 basis yesterday to 9.6 percent, the lowest since they were issued to creditors as part of a $12.9 billion defaulted debt swap in June.

Boudou postponed plans to sell as much as $1 billion worth of the 2017 bonds during the debt swap, saying the country wouldn't accept a yield of 10 percent or above. The government is now waiting for yields to fall below 9 percent, newspaper Ambito Financiero reported yesterday, citing Boudou.

An Economy Ministry spokesman didn't return a message seeking comment. Five-year credit-default swaps tied to Argentine debt fell 10 basis points yesterday to 776. A basis point equals $1,000 annually on a contract protecting $10 million of debt. Credit- default swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a government or company fail to adhere to its debt agreements.

Eoin Treacy's view Argentina's MERVAL Index has been one of only a small number to break to new highs following the 2008 crisis, reflecting the impressive growth evident in the economy. The Index is somewhat overbought in the short-term and beginning to encounter resistance below this year's peak. However, provided it continues to hold above the 200-day MA, the medium-term upside can continue to be given the benefit of the doubt.

CDS on the country's debt currently at 775 basis points remain at some of the highest absolute values in the world but are trending steadily lower, with a progression of lower rally highs.

The US Dollar has lost momentum against Argentine Peso but a sustained move below ARS3.8 would be required to complete what looks like a developing top formation.