Argentine dollar bonds are falling the most in emerging markets on concern government measures from devaluation to rate increases aren’t enough to improve the country’s deteriorating debt payment capacity.

Argentine government dollar bonds due 2015 fell 4.17 cents on the dollar to 85.04 cents, driving yields up to 19.71 percent, the highest since June 2012. The extra yield investors demand to own Argentine bonds over U.S. Treasurys widened 75 basis points to 1,142 basis points, while the average spread on emerging-market bonds rose 11 basis points at 10:28 a.m. in New York, according to JPMorgan Chase & Co.’s EMBIG index.

Argentina is losing foreign currency reserves at the fastest pace in more than a decade as estimated 28 percent inflation and currency controls spur capital flight. The funds, which the country relies on to pay debt and finance energy imports, dropped to a seven-year low of $28.3 billion. The government devalued the peso 15 percent last week and raised benchmark interest rates as much as 6 percentage points. The moves, coupled with less risk appetite for emerging market assets, haven’t settled investor concerns.

“There is fear and panic about the emerging markets and the news has not been good out of Argentina with reserves dropping $250 million yesterday,” said Russell Dallen, the head trader at Caracas Capital.