SOVEREIGN DEBT IN DOLLARS ONCE AGAIN TRADED IN LINE WITH THE GLOBAL BACKDROP, amid a more optimistic session driven by prospects of a potential de-escalation of the conflict in the Middle East. Bonds rose 1%, led by the Bonares, which advanced 1.2%, while Global bonds increased by 0.8%. Following this performance, country risk declined by 29 bps, closing at 554 bps. Meanwhile, Bopreal bonds fell by 0.3%.

‍ARS-DENOMINATED DEBT ALSO POSTED A POSITIVE SESSION, within a context of stability in short-term interest rates, which remain around 20% TNA, alongside a decline in the nominal exchange rate. Across the curve, fixed-rate instruments stood out with a gain of 1.0%, followed by CER-linked and dual bonds, which rose 0.9%. Meanwhile, dollar-linked bonds tracked the decline in the exchange rate, posting a drop of 0.4%.

‍THE OFFICIAL EXCHANGE RATE FELL 1.1% AND CLOSED AT $1,402.38, STANDING 15.8% BELOW THE UPPER BAND LIMIT. Financial dollars also moved lower, with the MEP declining 0.7% and the CCL falling 1%, closing at $1,423.3 and $1,461.6, respectively, narrowing the spread to 2.7%. The decline in exchange rates was supported by an improved global backdrop and continued FX purchases by the BCRA in the MLC, totaling USD 67 M. As a result, the central bank has accumulated purchases of USD 408 M so far this month (an average daily pace of USD 58 M), bringing the year-to-date total to USD 3,121 M. In this context, gross international reserves increased by USD 275 M to close at USD 46,043 M, mainly driven by the rise in gold prices.

‍THE MERVAL ROSE 2.6% IN PESOS AND 3.5% IN CCL DOLLARS, DRIVEN BY THE CONSTRUCTION AND UTILITIES SECTORS. As a result, the equity index closed at USD 1,847. The top gainers were TGN, CEPU, and COME, which advanced between 6.7% and 7.6%. Measured in dollars, no stocks posted losses. As for Argentine shares listed on Wall Street, they posted an average gain of 2.1%, led by CEPU, Edenor, and LOMA, which rose between 5.1% and 7.3%. Meanwhile, Globant, Vista, and Bioceres declined between 2.0% and 4.0%.

‍THE TREASURY SECRETARIAT ANNOUNCED THE TERMS OF THE AUCTION TO BE HELD THIS THURSDAY, in which it will face maturities totaling ARS 10.4 trillion between Lecaps and Dual bonds. Unlike the previous auction, the Treasury is once again offering fixed-rate instruments maturing in May and September (S15Y6 and S30S6). In addition, it will issue four CER-linked bonds (X15Y6, X30S6, TZXM7 and TZX28), two instruments linked to the TAMAR rate (M31G6 and TMF27), and two dollar-linked instruments (D30A6 and D30S6). The Treasury will also again offer the Bonar 2027, with a maximum placement amount of USD 250 M between the first and second rounds.