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ARS-DENOMINATED DEBT PERFORMED POSITIVELY IN A SESSION WHERE RATES REMAINED STABLE: the overnight repo and collateralized lending rates held around 21% NAR. The fixed-rate curve stood out with a 0.3% increase, with the short end already yielding below 2.4% EMR (29% NAR). The CER-adjusted curve rose 0.2%, while dual bonds advanced 0.1%. Dollar-linked bonds declined 0.7%, reflecting the 0.6% drop in the exchange rate.
DOLLAR-DENOMINATED SOVEREIGN BONDS STARTED THE WEEK WITH GAINS OF 0.4%: outperforming emerging market debt despite the escalation of the conflict in the Middle East. The short end of the curve under foreign law led the advance, rising 0.8%, compared with local-law bonds, which increased 0.4%. As a result, the country risk declined to 567 basis points. Meanwhile, Bopreals rose 0.4%.
THE OFFICIAL EXCHANGE RATE FELL 0.5%, AFTER FOUR CONSECUTIVE SESSIONS OF GAINS, CLOSING AT $1,401.58: remaining 15% below the upper limit of the band. Financial dollars also declined, with the MEP down 0.4% and the CCL down 0.6%, closing at $1,420.5 and $1,461.3, respectively, while the swap rate fell to 2.9%. The decline in exchange rates persisted even as the BCRA extended its uninterrupted foreign currency purchases in the MLC, acquiring USD 70 M and bringing the year-to-date net buying balance to USD 2,783 M. In this context, the stock of gross reserves rose by USD 957 M, closing at USD 46,517 M, mainly explained by the seasonal recomposition of reserve requirements at the beginning of the month.
THE MERVAL FELL 1.5% IN PESOS AND 0.9% IN DOLLAR TERMS, IN LINE WITH THE LATAM AND EMERGING MARKETS INDICES, CLOSING AT USD 1,781. Construction and banking stocks led the declines, with shares of Supervielle, Aluar, and BBVA dropping between 5.1% and 6.6%. Meanwhile, the energy and utilities sectors benefited from the rise in oil prices, with Edenor climbing 9.9% and Transener up 2.6%. Argentine stocks listed on Wall Street declined 0.8%, with Bioceres plunging 14.3% and Supervielle falling 4.5%. On the upside, Edenor advanced 8.0% and Adecoagro gained 4.7%.
