ARGENTINE ASSETS RALLIED IN A RECOVERY SESSION, with USD sovereigns taking center stage as country risk moved clearly away from the 600 bp zone, helped by a more favorable external backdrop with greater appetite for emerging market debt. The peso curve held a firm tone, led by TAMAR and inflation-linked bonds. The exchange rate barely rose and the BCRA kept adding reserves, while equities followed suit with the Merval up both in pesos and in dollars.

USD BONDS CLOSED WITH FIRM GAINS, posting an average change of 0.7% in a session where a favorable global backdrop also lifted emerging market debt. Globales advanced 0.8% and Bonares 0.7%, with the long end leading in both legislations with gains of up to 1.6% while the short end was practically unchanged. As a result, country risk fell 26 bp to close at 573 bp, while MEP dollar Bopreal bonds rose 0.1%.

THE PESO CURVE ENDED MIXED IN USD TERMS, led by TAMAR bonds, which gained 0.4%. CER-linked bonds were flat, driven by the long end while the short end was unchanged, and fixed-rate notes fell 0.1%, as did CER-to-TAMAR duals, while dollar-linked bonds declined 0.2%.

THE OFFICIAL EXCHANGE RATE ROSE 0.1%, closing at $1,520.30 and up 0.2% so far in October. The MEP dollar advanced 0.2% to $1,540.97 and the CCL dollar rose 0.2% to $1,608.03, with a 4.4% spread. Meanwhile, the BCRA bought USD 41 M on the day, accumulating USD 183 M in October and USD 14,763 M so far this year, while gross reserves rose USD 326 M to close at USD 49,123 M.

THE MERVAL ROSE 1.0% IN PESOS AND 0.6% IN CCL DOLLARS, to USD 1,798, in a session with a buying tone. Real estate, utilities and non-essential consumer stocks led, while materials, energy and communications lagged. On the local panel, Holcim (+6.9%), Central Puerto (+2.8%) and BYMA (+2.7%) stood out, while Transener (-3.2%), Aluar (-2.3%) and Ternium (-1.4%) led the declines. On Wall Street, ADRs rose 0.5% on average, with BBVA (+2.4%), Central Puerto (+2.3%) and IRSA (+2.3%) the best performers, and Ternium (-1.7%), Bioceres (-1.6%) and Corporación América (-1.3%) the worst.

THE BCRA RELEASED ITS SEPTEMBER MARKET EXPECTATIONS SURVEY (REM), projecting 1.9% m/m inflation for that month, 0.1 pp above the previous survey, with core inflation at 1.8%. For October, analysts expect it to decelerate to 1.7%. They also lowered their 2026 GDP growth projection by 0.6 pp to 1.5%, expecting a 1% s.a. contraction in the third quarter and a 1.8% recovery in the fourth.