Bond markets are central to the development of an efficient financial system as they lead to the generation of market interest rates that reflect the opportunity cost of funds at a wide range of maturities. In economies lacking well developed debt markets, interest rates may not be competitively determined and thus may not reflect the true cost of funds. The availability of a wide range of financial assets also enables savers and investors to tailor their financial decisions to their preferences and requirements, which is essential for an efficient functioning of the intermediation process.Domestic bond markets have remained underdeveloped for much of Argentina’s modern history owing to a number of policy and structural impediments. The resulting structure of domestic government and private sector debt, which was heavily biased towards short-term and/or dollar indexed liabilities, contributed to a worsening of the financial crises in the region during the 1990s and early 2000s.