THE TREASURY WILL CONVERT THE D30S6 TODAY, the dollar-linked note maturing September 30 with an outstanding balance of USD 4.397bn as of today, settling T+3. The menu is mostly short-dated: Lelink notes maturing October 30 (D30O6) and November 30 (D30N6), plus the dollar-linked note due June 2028 (TZV28) as the only long-dated option. D30S6 maturities total USD 4.397bn, of which around USD 800M is held by the BCRA and will be rolled over in full. Assuming take-up similar to the previous operation, around 35%, the maturity profile of the D30S6 as of the fixing date would stand at USD 2.338bn, slightly below the USD 2.595bn fixing of the D31G6.
USD BONDS CLOSED WITH AN AVERAGE DECLINE OF 0.4%, decoupling from EM debt, which traded higher. Globals fell 0.5%, led lower by the GD30 and GD41, both down around 0.7%, while Bonares limited losses to 0.2% thanks to the short end, with the AO27 up 0.1% and the AO28 nearly unchanged, versus declines of 0.4% to 0.5% in the AL35 and AE38. The steepness between the ends of the local curve remains pronounced, with the AO27 yielding 3.8% against 11.3% for the AE38. Country risk closed at 533bp, 9bp above the 524bp close on Friday. Bopreal notes decoupled from the rest and rose 0.1% on average, with the BPO 2027 strips up as much as 0.3% and the BPOA8 the only decliner, down 0.2%.
PESO DEBT ENDED LOWER IN USD TERMS, with losses concentrated in the long end. The fixed-rate segment ended little changed in peso terms, on a curve that continues to show a positive slope, from 20.8% NAR in the S30S6 to 28.1% in the T30J7. Dollar-linked notes fell 0.3% and duals 0.4% in USD terms, while TAMAR notes also edged down 0.1% in USD terms after a small peso gain. The worst performers were CER-linked bonds, down 0.4% in USD terms, with the long end losing 0.5% and the short end down 0.2%.
THE FX MARKET WAS STABLE AT THE START OF THE WEEK, with the MEP dollar falling 0.3% to close at $1,534.3, while the CCL dollar rose 0.2% to $1,592.9, pushing the MEP-CCL spread to 3.8%. Meanwhile, the BCRA bought USD 8M on the day, bringing its September total to USD 211M and its year-to-date total to USD 14.318bn. The gross reserves stock fell USD 103M to close at USD 49.695bn.
THE MERVAL FELL 0.7% IN CCL-DOLLAR TERMS, down 0.6% in pesos, closing at USD 1,876. The session was far from uniform: Communications led sector gains at 1.4%, followed by Construction at 0.3% and Materials flat at 0.0%, while Industry was the only sector in the red, down 0.4%. On the local panel, the top gainers were Transportadora Gas del Norte at 3.2%, Telecom Argentina at 2.8% and IRSA at 0.8%, while the biggest decliners were Mirgor at -4.2%, YPF at -3.1% and Holcim at -2.3%. ADRs closed with an average decline of 0.5%, with Telecom Argentina up 2.5%, Mercado Libre up 2.0% and Loma Negra up 0.8%, against declines of 3.2% in YPF, 3.0% in Vista Energy and 3.0% in AdecoAgro.
