ON MONDAY'S SESSION, LOCAL ASSETS POSTED A NEGATIVE DAY. Dollar sovereigns fell, with the long end leading declines in both Bonares and Globales, and country risk held around 573 bps. The peso curve traded lower across CER, Lecaps, dollar-linked and Duals. Official and financial exchange rates rose. The BCRA bought in the official market, although below its usual pace, and gross reserves fell. Di Tella released the Government Confidence Index, which dropped 12%.

DOLLAR DEBT HAD A NEGATIVE SESSION, in a day where Middle East tensions continued and weighed on emerging market debt. Sovereigns fell 0.4%, dragged down by the long end under both legislations, which dropped 0.6% on average, while the short end remained resilient with a 0.1% gain. With this performance, country risk rose again to 573 bps. Bopreals advanced 0.1%.

AHEAD OF THE TREASURY AUCTION, PESO DEBT TRADED LOWER ACROSS THE BOARD. The CER curve and fixed-rate Lecaps, which had been driving gains in recent weeks, fell 1.9% and 1.6% respectively. Dollar-linked declined 0.8%, while Duals dropped around 1.5%.

THE OFFICIAL EXCHANGE RATE ROSE 1.1% AND CLOSED AT $1,412.98, sitting 20.2% below the band's ceiling and accumulating a 2.2% gain in the month, after three consecutive months of decline. Financial dollars followed suit, with the MEP rising 1.9% to $1,464.8 and the parallel financial dollar advancing 1.5% to $1,517.3, while the spread stood at 3.6%. The BCRA continued buying foreign currency in the MLC but at a slower pace, USD 54 M daily, accumulating purchases of USD 2,544 M in the month and USD 6,819 M year-to-date. Gross reserves fell USD 96 M and closed at USD 46,088 M.

THE MERVAL ADVANCED 0.9% IN PESOS BUT RETREATED 0.6% IN DOLLARS, closing at USD 1,889. Most sectors traded lower, with industrials and construction leading the declines, while energy and consumer staples held steady. On the local panel, Transener (-6.1%), Loma Negra (-2.5%) and Edenor (-2.0%) led the losses, while Mirgor (3.6%), Holcim (2.0%) and Cresud (1.5%) were the top gainers. Among Argentine stocks trading in New York, the average fell 0.4%, with Bioceres (-3.4%), Loma Negra (-2.9%) and Grupo Supervielle (-1.7%) posting the biggest declines, while AdecoAgro (2.1%), Cresud (1.5%) and Vista Energy (1.5%) led the advances.

THE GOVERNMENT CONFIDENCE INDEX (ICG) FROM TORCUATO DI TELLA UNIVERSITY FELL 12.1% IN APRIL VERSUS MARCH —the steepest monthly drop of the year—, accumulating a 17.9% decline since December 2025 and standing at 2.02 points on a scale of 5. All sub-indices hit yearly lows: Efficiency was the most punished (-21.4%, to 1.87 pts), followed by General Evaluation (-17.2%) and Concern for the General Interest (-13.9%). In year-on-year terms, the index gives back 13.2% versus April 2025, and the average of the Milei administration stands at 2.42 points, the lowest reading since the start of the mandate.