Argentine bonds fell, deepening a selloff since the countrylost a bid to reverse a U.S. court ruling that it must payholders of defaulted notes in full, as investors doubted the nationcan skirt the order and avoid default with a plan to shift overseasdebt to the local market.

The proposal last night by Economy Minister Axel Kicillof toswap securities subject to New York laws into local debt istechnically difficult and of limited appeal for many holders of therestructured notes, analysts at Credit Suisse Group AG, CitigroupInc., and Jefferies Group LLC said in reports.

“It is difficult to imagine any financial intermediariesor even legal advisories willing to take the risk of beingperceived as violating a U.S. Court order,” Citigroup's GuillermoMondino and Jeffrey Williams wrote. “A significant number of marketparticipants may have to either sell their holdings or hold on to abond that might enter technical default.”