ARS-DENOMINATED DEBT POSTED A MIXED SESSION, with dollar-linked instruments leading with a gain of 0.2%. LECAP ended roughly flat, while CER bonds edged down 0.1% on average and dual-currency bonds declined 0.3%. Overnight rates remained stable at 20% NAR.

DOLLAR-DENOMINATED BONDS FELL 0.2% ON AVERAGE, a notably better performance than the 0.4% decline recorded by global emerging market debt. Globals and Bonares moved in near lockstep, falling 0.15% and 0.14% respectively. Country risk rose 9 bps and closed at 523 bps. Bopreal bonds were practically unchanged, with moves below 0.2% across the different strips.

THE OFFICIAL EXCHANGE RATE CLOSED AT $1,390.64, up 0.3% from the prior session, remaining 23.4% below the upper band ceiling of $1,716.13. The MEP dollar traded at $1,422.46, down 0.3%, while the cable rate closed at $1,486.51, up 0.2%. The spread between the cable rate and the official rate stands at 6.9%, with the MEP-cable gap at 4.5%. The BCRA purchased USD 35M during the session, accumulating USD 220M in May and USD 7,375M year-to-date, a pace that has been decelerating through the month. Gross reserves rose USD 277M and closed at USD 45,951M.

THE MERVAL LOST 1.6% IN PESOS AND 1.8% IN DOLLAR TERMS, closing at USD 1,907. Declines were broad-based across all sectors, with construction, consumer, and materials leading the losses. On the local panel, Holcim (-6.6%), Central Puerto (-4.7%), and Loma Negra (-4.6%) led the declines, while Banco de Valores (+4.7%) was the only notable gainer. Among New York-listed stocks, the average fell 2.3%, with Loma Negra (-5.1%), Edenor (-5.0%), and Central Puerto (-4.8%) posting the steepest drops, while MercadoLibre (+1.6%) and Globant (+0.7%) were the only gainers of the session.

IN THE PRIMARY CORPORATE MARKET, PECOM issued a corporate bond for USD 196.8M at 7.5% for four years under local law, a notable volume for the domestic issuance segment, bringing total corporate placements in May to USD 368M.

INDEC RELEASED THE INDUSTRIAL AND CONSTRUCTION ACTIVITY INDICATORS FOR MARCH 2026. The manufacturing production index (IPI) rose 3.2% m/m in seasonally adjusted terms and was up 5.0% y/y, the first positive year-over-year reading after eight consecutive months of decline. The figure contrasts with the first two months of the year, when industry had accumulated a contraction of around 6% y/y, suggesting a break in the short-term trend. The construction activity indicator (ISAC) grew 4.7% m/m in seasonally adjusted terms and advanced 12.7% y/y — the best reading of the year. First-quarter construction output ended in positive territory on a year-over-year basis, unlike manufacturing, which still closed the period in negative territory.