ARGENTINE ASSETS HAD A HEAVILY PUNISHED SESSION, as dollar bonds extended their decline and diverged from emerging market debt, while country risk touched its highest level in over a year. Equities joined the sell-off, with widespread declines both on the local board and on Wall Street. The peso curve held up better, although short-term rates tightened due to the holidays. In the FX market, the official and MEP dollar fell and the BCRA resumed buying.

DOLLAR BONDS FELL 2.5% ON AVERAGE, on a day when emerging market debt dropped 0.4%. Globales fell 2.5% and Bonares 2.4%. By maturity, 2027 bonds held up better (-0.5%), while the curve from 2028 onward fell 2.6%. Against this backdrop, country risk rose 75 bps to close at 927 bps. Bopreal bonds fell 0.7% on average, with the decline concentrated in the 2028 strips, while the 2027 strips were practically stable.

THE PESO CURVE CLOSED MIXED IN USD TERMS. dollar-linked bonds rose 0.4%, driven by the short end (+0.8%), while the long end gave back 0.4%. Fixed-rate bonds advanced 0.2%. CER bonds closed practically unchanged: the short end rose 0.3% and the long end fell 0.3%. TAMAR bonds slipped 0.1%, and CER-to-TAMAR duals were hit hardest, down 1.0%. In the money market, repo rates jumped toward the close due to the holidays: the repo rate averaged 25.4% NAR, while the 7-day repo touched as high as 170% NAR near the end of the session.

THE OFFICIAL EXCHANGE RATE FELL 0.2% to close at $1,545.4, up 0.5% so far in November. The MEP dollar fell 0.6% to $1,575.4, and the CCL closed practically unchanged at $1,679.6, widening the spread to 6.6%. Meanwhile, the BCRA bought USD 42 M during the session, accumulating USD 51 M in November and USD 16,026 M so far this year. Gross reserves, meanwhile, fell USD 793 M to close at USD 49,642 M.

THE MERVAL FELL 3.6% IN CCL-DOLLAR TERMS (-3.7% in pesos), closing at USD 51.0. Holcim (+3.3%) was the only gainer on the local board. Cresud (-1.2%) and Mirgor (-2.4%) posted the mildest declines, while Transportadora de Gas del Sur (-7.3%), YPF (-6.7%) and Edenor (-6.4%) led the losses. On Wall Street, ADRs fell 4.4% on average. Globant (+1.8%) was the exception, and Adecoagro (-1.1%) and Pampa Energia (-1.5%) fell only slightly, while Mercado Libre (-13.6%), Bioceres (-11.7%) and YPF (-6.7%) led the losses.