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IN THE SESSION FOLLOWING THE TREASURY AUCTION, PESO-DENOMINATED DEBT POSTED A POSITIVE PERFORMANCE AMID ANOTHER COMPRESSION IN OVERNIGHT RATES: the one-day repo (caución) closed at 22% NAR and the Repo at 21% NAR. Both CER-linked bonds and the fixed-rate curve stood out, rising 0.1%, while the short end compressed from 2.8% to 2.6% EMR. Meanwhile, dual and dollar-linked bonds fell 0.2%.
DOLLAR-DENOMINATED SOVEREIGN BONDS TRADED LOWER AGAIN, declining 0.2% in line with the broader emerging markets move, with more pronounced losses in the long end of the curve, which fell by 1.1% on average. Following this performance, country risk rose again to 554 bps. Meanwhile, Bopreal bonds dropped 0.9%.
THE OFFICIAL EXCHANGE RATE MOVED SHARPLY HIGHER, RISING 1.4% TO CLOSE AT ARS 1,408.7, STANDING 14% BELOW THE UPPER LIMIT OF THE FX BAND. Financial dollars posted more moderate gains, with the MEP up 0.2% and the CCL up 0.4%, closing at ARS 1,431.3 and ARS 1,478.8, respectively, while the CCL-MEP spread ended at 3.3%. Meanwhile, the BCRA continued purchasing foreign currency in the official market, buying USD 41 M and bringing February’s net purchases to USD 1,524 M, with year-to-date purchases totaling USD 2,682 M. In this context, gross international reserves increased by USD 749 million to USD 46,156 M, mainly explained by a Bopreal payment of around USD 1,000 M.
THE MERVAL FELL 1.6% IN PESOS AND 2.0% IN CCL DOLLARS. As a result, it closed at USD 1,863, dragged down by the banking sector. Shares of Banco Macro, Supervielle, and BBVA declined between 3.4% and 6.4%, while ByMA posted a 1.7% gain. Argentine stocks listed on the New York Stock Exchange dropped 1.3%, led by losses in Banco Macro, Supervielle, and YPF, which fell between 3.0% and 6.4%. Meanwhile, Globant rose 4.4%.
