HARD-DOLLAR SOVEREIGN BONDS RALLIED IN THE FIRST SESSION OF THE WEEK, with an average gain of 1.7%, well above the 0.2% move in EM debt, a gap reflecting the favorable spillover from Brazil's election. Bonares rose 1.8% and Globales 1.5%, with the long end of both legislations up around 2% versus more moderate gains in shorter-dated issues. Country risk fell 56 bps to close at 599 bps, while MEP dollar Bopreal bonds gained 0.2%.
PESO CURVES ENDED HIGHER IN USD TERMS, boosted by the CCL pullback and led by inflation-linked names. CER-TAMAR duals led with 1.8%, followed by CER bonds with 1.7% on long-end strength, while fixed-rate notes gained 1.4% and dollar-linked bonds added 1.2%, in line with the official rate's decline. Overnight, the one-day caucion rate fell nearly 1 pp to 20.5% NAR, with repo at similar levels.
THE OFFICIAL EXCHANGE RATE FELL 0.3% TO $1,519.2, bringing its October gain to 0.1%. Among financial dollars, the MEP rate dropped 0.7% to $1,538.3 and the CCL rate retreated 1.3% to $1,605.0, with the spread between them at 4.3%. The Central Bank bought USD 14 M in the session, bringing October purchases to USD 142 M and USD 14,722 M year-to-date, while gross reserves rose USD 144 M to close at USD 48,797 M.
THE MERVAL ROSE 4.7% IN CCL DOLLAR TERMS (3.7% IN PESOS), closing at USD 1,787. Construction, financials and real estate led the advance, while non-essential consumer, materials and energy lagged, though still higher. Top gainers in the local panel were Transportadora de Gas del Sur (7.0%), Banco BBVA Argentina (6.7%) and Banco Supervielle (6.4%), while Transener (-0.4%), Mirgor (0.1%) and Ternium (0.8%) brought up the rear. On Wall Street, ADRs rose 5.3% on average, led by Mercado Libre (9.7%), Grupo Supervielle (7.3%) and BBVA (7.2%), with Bioceres (1.1%), Globant (1.9%) and Ternium (2.4%) posting the smallest gains.
