EXTERNAL FACTORS WEIGHED ON THE SESSION AGAIN, as the jump in long-term U.S. rates and outflows from emerging markets weighed on dollar sovereigns, which pulled back and pushed country risk back above 500 bps. The peso curve, by contrast, closed higher with overnight rates slightly lower, while the official FX rate eased and the CCL held steady. The Merval ended lower, with New York-listed shares lagging behind.

DOLLAR SOVEREIGNS SLIPPED 0.1% ON AVERAGE, with Globales down 0.3% while Bonares closed unchanged, and the pain concentrated in the long end of the New York-law curve, which lost up to 0.8% versus a virtually flat short end. The move tracked emerging-market debt, which closed lower on a day of fund outflows and with the 10-year Treasury yield at two-decade highs. Country risk rose 16 bps to close at 506 bps. Bopreal, measured in dollars, ended unchanged.

PESO CURVES ENDED MOSTLY FLAT TO SLIGHTLY HIGHER IN USD TERMS, with moves staying narrow. CER-linked bonds led with a 0.1% gain, followed by TAMAR-linked notes at 0.1%, while fixed-rate bonds and dollar-linked paper were flat and CER-to-TAMAR duals slipped 0.2%. Overnight rates eased slightly, with the one-day money market rate (caución) at 20.7% NAR and the repo rate at 20.6%, with no signs of liquidity stress.

THE OFFICIAL EXCHANGE RATE FELL 0.2% TO $1,506.68, bringing its month-to-date decline to 0.2%. The MEP rate eased 0.1% to $1,532.89 and the CCL rose 0.1% to $1,592.31, with the spread (canje) at 3.9%. Separately, the BCRA bought USD 14 million on the day, bringing September purchases to USD 149 million and USD 14,256 million so far this year. Meanwhile, gross reserves fell USD 458 million to close at USD 49,953 million.

THE MERVAL FELL 0.2% IN PESOS AND 0.3% IN CCL-ADJUSTED DOLLAR TERMS, closing at USD 1,932. Energy led gains, followed by construction and industrials, while non-essential consumer, staples and financials lagged. Among local shares, YPF stood out with a 2.0% gain, Transportadora de Gas del Norte rose 1.6% and Telecom Argentina gained 1.1%, while Cresud lost 2.0%, Aluar fell 1.8% and Banco Galicia dropped 1.7%. Argentine ADRs listed in New York averaged a 0.9% decline, with Vista Energy up 2.2%, Ternium up 1.9% and Telecom up 0.9%, against declines of 6.8% for Bioceres, 3.3% for Mercado Libre and 2.0% for Corporación América.