ON TUESDAY, LOCAL ASSETS HAD A NEGATIVE SESSION across fixed income and equities, pressured by an adverse global backdrop. Sovereign dollar bonds declined and country risk rose to 544 bps. On the peso curves, CER and dollar-linked instruments edged higher while Lecaps and Bontes retreated and Dual bonds held steady. Financial exchange rates rose alongside the official rate. The BCRA once again purchased over USD 100M in the official market and gross reserves increased. Wholesale inflation data was released, coming in as a negative surprise.

PESO-DENOMINATED DEBT POSTED A MIXED PERFORMANCE, with dollar-linked bonds leading on a relative basis at -0.3%, in line with the move in exchange rates. CER instruments fell 0.4%, though the middle segment of the curve showed a more moderate decline of up to 0.1%. Dual bonds were down 0.5%, while the TAMAR rate holds at 22.8% NAR and overnight rates at 20% NAR, with the BCRA's repo stock stabilized above pre-settlement levels from the last auction. The fixed-rate curve also retreated.

WEIGHED DOWN BY THE GLOBAL CONTEXT, DOLLAR-DENOMINATED SOVEREIGN BONDS HAD A NEGATIVE SESSION, falling 0.4% in line with the performance of emerging market debt. Globals posted the steepest decline at 0.4%, while Bonares fell 0.3%. As a result, country risk edged higher to 544 bps. Bopreal also retreated marginally.

THE OFFICIAL EXCHANGE RATE ROSE 0.3%, closing at $1,398.92, sitting 24.3% below the upper band ceiling. Financial exchange rates saw a sharper move: the MEP advanced 0.7% and the cable rate 0.5%, closing at $1,430 and $1,493.9, respectively, while the spread narrowed to 4.5%. Meanwhile, the BCRA purchased USD 144M in the official FX market, bringing monthly purchases to USD 1,223M and year-to-date purchases to USD 8,378M. Gross reserves rose by USD 54M, closing at USD 46,190M.

THE MERVAL RETREATED 1.5% IN PESOS AND 2.0% IN DOLLAR TERMS, closing at USD 1,857. Declines were led by the financial sector, while energy and utilities edged higher. Among locally-listed stocks, Banco Supervielle (-5.6%), Banco Galicia (-5.6%), and Banco BBVA Argentina (-4.9%) led the losses, while Transener (+2.2%), Transportadora Gas del Norte (+2.1%), and YPF (+0.7%) were the top gainers. Among ADRs, the average fell 2.6%, with Grupo Supervielle (-6.2%), Galicia (-5.6%), and BBVA (-5.4%) among the worst performers, while YPF (+1.0%), Globant (+1.0%), and Vista Energy (+0.9%) led the gains.

INDEC PUBLISHED THE APRIL WHOLESALE PRICE INDEX (IPIM), showing a 5.2% monthly increase, driven by a 5.3% rise in domestic products and 2.5% in imports. The reading represents an acceleration of 1.8 percentage points versus March's 3.4% and is double the CPI for the same month (2.6%). Among domestic products, the largest contributions came from crude oil and gas (2.09 pp), refined petroleum products (1.63 pp), chemicals (0.46 pp), food and beverages (0.26 pp), and rubber and plastic products (0.18 pp). The year-to-date cumulative reached 11.6% and the year-over-year change stands at 30.8%. The Construction Cost Index (ICC) recorded a 3.1% monthly increase in April, with Materials up 2.9%, Labor up 3.1%, and General Expenses up 3.3%. The year-to-date cumulative reached 10.1% and the year-over-year change stands at 30.2%.