DOLLAR-DENOMINATED DEBT PERFORMED WELL AND ROSE 0.3%, SUPPORTED BY A CALMER GLOBAL BACKDROP. However, country risk climbed back above 600 bps due to the decline in US Treasury yields, which widened the spread over Argentine risk. Meanwhile, Bopreal bonds rose 0.2%.

ARS-DENOMINATED DEBT HAD A POSITIVE SESSION FOLLOWING THE SETTLEMENT OF THE AUCTION, with CER-linked bonds standing out with a gain of 1.2%, while the fixed-rate curve rose 0.3%, in a context where the market adjusted its inflation expectations to 2.4% m/m for the next two months. Meanwhile, Dual bonds increased 0.2%, while dollar-linked bonds fell 0.9%.

THE OFFICIAL EXCHANGE RATE ROSE 0.1% AND CLOSED AT $1,394.66, STANDING 17.1% BELOW THE UPPER LIMIT OF THE FX BAND. Financial dollars also increased, with the MEP and the CCL both rising 0.1% to close at $1,426.2 and $1,474, respectively, while the swap spread held around 3.4%. Meanwhile, the BCRA purchased USD 50 M in the official market, bringing total purchases for the month to USD 636 M. Gross reserves, however, fell by USD 871 M to USD 44,788 M, mainly due to payments to international organizations.

THE MERVAL FELL 1.3% IN PESOS AND 1.4% IN DOLLAR TERMS, PRESSURED BY THE DECLINE IN OIL PRICES AND THE HEAVY WEIGHTING OF ENERGY COMPANIES IN THE INDEX. As a result, the Merval closed at USD 1,769. The biggest declines were in COME (-3.9%), Cresud (-2.9%), and YPF (-2.5%). Meanwhile, gains were seen in ByMA (1.3%), IRSA (1.1%), and Aluar (1.1%). Argentine stocks listed on Wall Street fell 1.1% on average, led by Bioceres (-16.1%), Cresud (-2.7%), and Edenor (-2.2%). Meanwhile, MELI (3.8%), Corporación América (2.1%), and Vista (1.7%) posted the strongest gains.