ARS-DENOMINATED DEBT CONTINUED ITS POSITIVE MOMENTUM IN THE SESSION FOLLOWING THE AUCTION, with broad-based gains across curves. Dual bonds led performance, rising 0.8%, followed by CER-linked and fixed-rate bonds, which advanced 0.3%. The fixed-rate curve is already trading below 2% EMR out to August 2026, even after the latest inflation print came in more persistent than expected. Dollar-linked bonds fell 0.7%, in line with the decline in the official exchange rate.

DOLLAR-DENOMINATED SOVEREIGN BONDS POSTED ANOTHER NEGATIVE SESSION, falling 0.6% with steeper losses at the long end of the curve. Globals dropped 0.6% while Bonars fell 0.5%, underperforming broader EM debt. Country risk stood at 525 bps. Bopreales retreated 1%.

THE OFFICIAL EXCHANGE RATE RESUMED ITS DOWNWARD TREND, falling 0.8% to close at $1,352.98, now 24% below the upper band ceiling. The MEP dollar moved in the opposite direction, rising 1.1%, while the CCL slipped 0.1% to close at $1,456.8, compressing the spread sharply to 3.6% from highs near 4.8% on Wednesday. The BCRA continued buying in the FX market, acquiring USD 75M, bringing monthly net purchases to USD 1,539M and year-to-date to USD 5,925M. Gross reserves edged up USD 4M to USD 45,631M.

THE MERVAL ADVANCED 0.2% IN PESOS AND 0.3% IN CCL DOLLARS, closing at USD 2,007. Real estate, industrials, and energy led gains, while materials and financials lagged. Among local stocks, Transener (+3.2%), BBVA Argentina (+2.7%), and IRSA (+2.5%) topped the leaderboard, while ByMA (-5.9%), Holcim (-2.7%), and Aluar (-1.7%) were the biggest laggards. ADRs averaged a gain of 1.0%, with Bioceres (+10.1%), Vista Energy (+4.5%), and BBVA (+1.6%) as top performers; MercadoLibre (-2.7%), Banco Macro (-1.2%), and Ternium (-1.2%) posted the steepest declines.

MARCH 2026 WHOLESALE PRICE INDICES SHOWED CONTINUED INFLATIONARY PRESSURE. The IPIM rose 3.4% m/m (+27.9% y/y), driven by a 3.5% increase in domestic products and a 1.1% rise in imports. The main driver was the crude oil and gas sector, which surged 27.3% m/m and accounted for 2.02% of the total index, partially offset by a 3.2% m/m drop in agricultural products. Both the IPIB and IPP rose 3.0% m/m.

THE CONSTRUCTION COST INDEX (ICC) FOR GREATER BUENOS AIRES ROSE 2.5% M/M IN MARCH 2026, bringing the annual rate to 27.1%. Labor costs led monthly gains at 3.4%, driven by new UOCRA wage agreements and an extraordinary bonus. Materials and general expenses each rose 1.8% m/m; the latter reflecting electricity tariff updates from Edenor and Edesur as well as increases in water and gas services. At the work-item level, masonry (+3.5%) and metalwork and ironwork (+3.1%) recorded the largest increases.

‍