THE LOCAL MARKET SAW A SELLER-DRIVEN SESSION ACROSS NEARLY ALL ASSETS, as long-dated U.S. Treasury yields climbed to new highs, weighing on emerging market debt and on dollar sovereigns, which retreated and pushed country risk higher. The peso curve fell further once translated into USD terms, with long CER-linked bonds underperforming the rest. The exchange rate rose across all its segments, and the BCRA once again bought only a small amount. In equities, banks dragged the Merval lower.
DOLLAR BONDS FELL 1.0% ON AVERAGE, in line with emerging market debt, which dropped 1.1% on a session marked by the rise in long-dated U.S. Treasury yields. Bonares lost 1.1% and Globales 0.9%. Within local law bonds, the long end fell as much as 2.1%, while shorter-dated bonds barely moved. As a result, country risk rose 11 bps to 566 bps. Bopreal bonds fell 0.4%, with the 2028 series trading below the 2027 strips.
PESO CURVES ENDED LOWER ACROSS THE BOARD IN USD TERMS. TAMAR-linked bonds fell 1.0% and TAMAR-CER duals fell 0.9%. CER bonds fell 0.7%, with the entire decline concentrated in the long end, which dropped 0.9%, while the short end slipped 0.5%, steepening the real curve. Dollar-linked and fixed-rate instruments fell 0.6%. Within fixed rate, short-dated Lecap notes were little changed, while 2027-and-beyond maturities fell as much as 0.8%.
THE OFFICIAL EXCHANGE RATE ROSE 0.2% to close at $1,516.3, up 0.5% so far in September. The MEP dollar advanced 0.3% to $1,541.8 and the CCL rose 0.5% to $1,603.0, widening the spread between them to 4.0%. Meanwhile, the BCRA bought USD 6 M on the day and has accumulated USD 224 M in September and USD 14,331 M year to date. Gross reserves, meanwhile, fell USD 481 M to close at USD 48,933 M.
THE MERVAL FELL 1.2% IN CCL-DOLLAR TERMS (0.9% IN PESOS), closing at USD 1,843.8. The financial sector dragged the index down, followed by real estate and communications, while energy, consumer staples and industrials were the only sectors to rise. On the local panel, in USD terms the best performers were Cresud (+1.6%) and YPF (+1.1%), while Banco de Valores was little changed (-0.1%); the steepest declines came from Holcim (-5.1%), Banco Supervielle (-3.5%) and Banco Galicia (-3.4%). In New York, ADRs fell 0.8% on average. Bioceres (+8.9%), Cresud (+2.5%) and Vista Energy (+1.2%) gained, while Grupo Supervielle (-3.9%), Banco Macro (-3.5%) and BBVA (-3.3%) ended lower.
