LOCAL ASSETS HAD ANOTHER POSITIVE SESSION ON THURSDAY. Sovereign dollar bonds edged higher and country risk compressed to 496 bps. Peso curves closed on a firm note: Lecaps, CER instruments, and Dual bonds advanced, while dollar-linked bonds declined. Financial exchange rates pulled back, while the official rate was unchanged. The highlight of the day was the BCRA, which purchased USD 447M in the official FX market — the second-largest single-session purchase of the year — driving a sharp increase in gross reserves.

ARS-DENOMINATED DEBT ROSE AGAIN IN THE POST-AUCTION SESSION, despite the Treasury absorbing ARS 1.6 trillion, as the market continues to operate with ample liquidity. The fixed-rate curve led gains with an average advance of 0.2%. The CER curve followed with a 0.1% gain, as did Dual bonds, while dollar-linked instruments declined 0.2%.

DOLLAR-DENOMINATED DEBT ADVANCED AGAIN IN LINE WITH EMERGING MARKET PEERS, posting an average gain of 0.1%, led by Globals (+0.2%), with stronger gains in the GD41 (+0.4%), while Bonars were broadly flat although the AL41 (+0.7%) stood out. With this performance, country risk fell to 496 bps. Bopreal bonds were also notable, rising 0.7%.

THE BCRA ACCELERATED ITS OFFICIAL FX PURCHASES WITH USD 447M ON THURSDAY, bringing the May cumulative total to USD 2,531M (USD 140M per day) — a pace virtually identical to April's (USD 138M). Year-to-date purchases now stand at USD 9,686M, approaching the USD 10,000M target. Gross reserves rose USD 644M to close at USD 48,511M. Purchases were sustained with the official exchange rate steady at ARS 1,411.4, sitting 24.4% below the upper band ceiling. Financial exchange rates edged higher: the MEP rose 0.3% and the CCL 0.1%, closing at ARS 1,436.6 and ARS 1,482.5, respectively, while the exchange rate spread narrowed to 3.3%.

THE MERVAL ADVANCED 0.6% IN PESO TERMS AND 0.5% IN DOLLAR TERMS, closing at USD 2,084. Sector performance was mixed: financials led gains alongside consumer and utilities, while communications declined. Locally, Holcim (+4.5%), Banco Macro (+2.9%), and Transener (+1.7%) topped the advancers, while Banco de Valores (-2.9%), Central Puerto (-2.1%), and IRSA (-2.1%) led the declines. Among NYSE-listed shares, the average rose 0.4%, with Bioceres (+3.1%), Banco Macro (+2.9%), and Globant (+2.5%) as top performers, while Ternium (-1.4%), Central Puerto (-1.4%), and IRSA (-1.3%) lagged.