LOCAL CURRENCY DEBT HAD A POSITIVE SESSION, WITH THE CER CURVE AND FIXED-RATE INSTRUMENTS STANDING OUT, BOTH RISING 0.8% AND SHOWING A COMPRESSION ACROSS THE ENTIRE CURVE. At these levels, the fixed-rate curve yields between 2.0% and 2.2% effective monthly rates, while real rates of up to -9% are observed in the short end of the CER curve. Meanwhile, dual bonds gained 0.6%, whereas dollar-linked instruments fell 1.8%.

‍SOVEREIGN DOLLAR-DENOMINATED DEBT TRADED LOWER FOLLOWING WEDNESDAY’S RALLY, amid a negative session for global fixed income markets. Global bonds declined by 0.6%, with losses of up to 0.9% in the long end of the curve, while Bonares fell by 0.3%. On the back of this performance, country risk rose to 591 basis points. Meanwhile, BCRA debt instruments edged down by 0.2%.T

HE OFFICIAL EXCHANGE RATE FELL AGAIN BY 0.6% AND CLOSED AT $1,370.29, ITS LOWEST LEVEL SINCE OCTOBER OF LAST YEAR, and stood 20% below the upper bound of the band. Financial dollar rates also declined: both the MEP and the CCL fell by 0.1%, closing at $1,397.2 and $1,444.9, respectively, keeping the spread at 3.4%. Meanwhile, the BCRA continued FX purchases in the MLC for USD 57 M, bringing net purchases to USD 1,274 M for the month and USD 3,989 M year-to-date. In addition, gross reserves increased by USD 296 M to USD 43,536 M.

‍THE MERVAL FELL 1.3% IN PESOS AND 1.2% IN USD (CCL), CLOSING AT USD 1,917. The decline was driven by the construction and industrial sectors. The most affected stocks were CEPU, Supervielle, and LOMA, with losses ranging between 4.0% and 5.0%. The energy sector partially offset the declines, supported by higher oil prices. The top gainers were YPF (+1.2%) and Aluar (+1.1%). Argentine stocks listed on Wall Street dropped 1.7%, weighed down by AdecoAgro, CEPU, and LOMA, which fell between 4.2% and 5.8%. Meanwhile, Globant, Vista, and YPF posted gains ranging from 1.2% to 4.0%.

‍IN JANUARY, ECONOMIC ACTIVITY AS MEASURED BY THE EMAE GREW 0.4% M/M AND 1.9% Y/Y, AND +0.4% M/M IN SEASONALLY ADJUSTED TERMS. The result was mainly driven by fishing (+50% y/y), agriculture, livestock, hunting and forestry (+25.1% y/y), and mining and quarrying (+9.6% y/y), which together contributed 1.8 p.p. to growth. On the downside, wholesale and retail trade and repairs (-3.2% y/y), electricity, gas and water (-3.0% y/y), manufacturing (-2.6% y/y), and public administration (-1.6% y/y) jointly subtracted 0.9 p.p., leaving a modest net expansion that reflects a recovery concentrated in the primary sector rather than in industrial activity or domestic demand.