.svg){kind=small}
.svg){kind=small}
IN THE FIRST SESSION OF JUNE, local assets had a very positive day. Dollar-denominated sovereigns rose and country risk compressed to 492 bps. Peso curves followed suit, with gains across CER, fixed-rate bonds, dollar-linked, and dual instruments. Both the official and financial exchange rates moved higher, in a session with lighter BCRA purchases. May tax revenue was also released, showing a real improvement over the prior month.
ARS-DENOMINATED DEBT POSTED A MIXED PERFORMANCE, with dollar-linked bonds leading gains, rising 0.3%, in line with the appreciation in exchange rates. CER bonds were flat, while fixed-rate instruments and dual bonds edged down 0.3%.
DOLLAR-DENOMINATED DEBT ADVANCED AGAIN IN LINE WITH EMERGING MARKET PEERS, with the average rising 0.5%, led by Bonares (+0.5%), with stronger gains in the AN29 (+1.0%), while Globales rose 0.4%, with GD30 (+0.7%) standing out. Country risk fell to 490 bps. BOPREALs rose 0.2%.
THE OFFICIAL EXCHANGE RATE MOVED HIGHER AT THE START OF THE MONTH, rising 0.8% to close at ARS 1,421.46, sitting 24% below the upper band ceiling. Financial exchange rates edged up: MEP gained 0.2% and the cable rate 0.4%, closing at ARS 1,436.7 and ARS 1,489.9, respectively, while the spread held at 3.7%. The BCRA purchased USD 55M in the official FX market, slowing its pace relative to prior sessions, bringing year-to-date purchases to USD 9,811M. Gross reserves rose USD 177M to USD 48,191M.
THE MERVAL ROSE 2.4% IN PESOS AND 2.1% IN DOLLAR TERMS, closing at USD 2,177, outperforming LatAm (-0.3%) and Brazil (-0.5%). Gains were broad-based across all sectors, with energy leading, followed by utilities and communications. In the local panel, IRSA (7.0%), Telecom Argentina (6.8%), and Holcim (5.1%) led the advances, while Ternium (-1.0%) was the only decliner. Among ADRs, the average rose 2.5%, with Globant (10.1%), Bioceres (7.7%), and AdecoAgro (3.7%) as the top performers, while Telecom Argentina (-1.3%) was the only notable laggard.
TAX REVENUE ROSE 1.6% YEAR-OVER-YEAR IN REAL TERMS IN MAY, snapping a nine-month streak of consecutive declines, though the result was almost entirely driven by income tax, which surged 25.8% y/y in real terms amid heavy corporate advance payments. Excluding income tax and fuel taxes — up 25.8% and 6.9% y/y in real terms, respectively — the remaining categories posted broad-based declines. Export taxes deepened their contraction to -38.8% y/y in real terms, import-related duties fell 21.2% y/y in real terms, labor market-linked taxes declined 4.6% y/y, and VAT slipped 3.1% y/y in real terms. Over the first five months of the year, cumulative tax revenue is down 4.8% y/y in real terms, an improvement from the -7.0% recorded through April.
