DOLLAR BONDS HAD A FIRM SESSION, LED BY THE LONG END, with country risk improving alongside the good tone in emerging-market debt. Peso curves held a buying bias across all segments in USD terms, including dollar-linked notes, while the official rate was practically stable and financial dollars lost ground. The most relevant development of the day was the central bank resuming FX purchases after three sessions without intervening. Equities were mixed: the Merval fell in pesos and was unchanged measured in dollars.

DOLLAR BONDS ROSE 0.7% ON AVERAGE, above emerging-market debt, which advanced 0.5%. Globales gained 1.0% and Bonares 0.5%. Within local-law bonds the contrast between segments was marked: the long end rose as much as 2.0%, while shorter maturities closed slightly lower. In that context, country risk fell 14 bps to close at 749 bps. Bopreal notes, for their part, fell 0.1% in MEP dollars.

PESO CURVES POSTED SOLID GAINS ACROSS THE BOARD IN USD TERMS, CER-to-TAMAR duals, fixed-rate bonds and CER-linked bonds each advanced 1.1%, while dollar-linked notes, which fell 0.2% in pesos in line with the stability of the official rate, also finished higher at 0.7%.

THE OFFICIAL EXCHANGE RATE ROSE 0.1% TO CLOSE AT $1,539.6, bringing its October devaluation to 1.5%. The MEP dollar fell 0.7% to $1,560.5 and the CCL dollar dropped 0.9% to $1,651.7, with the spread at 5.8%. Meanwhile, the central bank resumed FX purchases after three sessions without intervening, buying USD 47 M, bringing October purchases to USD 1,299 M and year-to-date purchases to USD 15,879 M. Gross reserves fell USD 447 M, a seasonal month-end move tied to reserve requirements, closing at USD 50,154 M.

THE MERVAL FELL 1.0% IN PESOS BUT WAS UNCHANGED (0.0%) IN CCL-DOLLAR TERMS, On the local panel, the biggest gainers were Transportadora Gas del Norte (+6.3%), Ternium (+5.0%) and Aluar (+4.5%), while Edenor (-2.2%), YPF (-2.0%) and Sociedad Comercial del Plata (-1.2%) led the declines. On Wall Street, ADRs fell 0.4% on average. Corporación América (+3.6%), Banco Macro (+1.8%) and Loma Negra (+1.5%) finished higher, while Bioceres (-7.8%), YPF (-3.1%) and Edenor (-2.2%) were the worst performers.