Financial markets in Argentina pulled back modestly following the country's second default in 13 years, as government officials vowed to take their fight with creditors to an international court and banks scrambled to cut a deal to resolve the conflict.

JP Morgan is in talks to buy bonds from a group of hedge funds demanding full payment from Argentina, a person familiar with the matter said. Argentine media have reported that private-sector banks are attempting to arrange a deal to help Argentina pay off debt it owes the funds, who have sued for full payment on bonds the country defaulted on in 2001.