ON WEDNESDAY'S SESSION, LOCAL ASSETS HAD A VERY POSITIVE DAY. Dollar-denominated sovereigns rose and country risk broke below 500 bps. ARS-denominated curves followed suit, with gains in Lecaps, CER, and dollar-linked instruments, while Duals held steady. Financial exchange rates declined, while the official exchange rate edged higher, narrowing the spread. The BCRA purchased over USD 100M in the official market, although gross reserves edged slightly lower. The Treasury once again rolled over more than 100% of its maturities.
AHEAD OF THE TREASURY AUCTION, ARS-denominated debt posted a stable performance, with dollar-linked instruments leading the way with gains of 0.9%, consistent with the rise in the official exchange rate. The CER curve followed with an advance of 0.7%, while the fixed-rate curve rose 0.6% and Duals posted slight gains.
DOLLAR-DENOMINATED DEBT ONCE AGAIN POSTED A POSITIVE PERFORMANCE, led by Globals which gained 0.3%, with more pronounced gains in the GD38 (+0.8%) and GD46 (+1.2%), while Bonars advanced 0.1%, led by the AE38 (+0.4%). The curve performed in line with emerging market debt and, with this result, country risk compressed below 498 bps. Bopreals also rose 0.8%.
THE OFFICIAL EXCHANGE RATE ROSE 0.2% AGAIN, closing at ARS 1,411.18, now 24.3% below the upper band ceiling (ARS 1,753.55). Financial exchange rates declined: the MEP fell 0.2% and the financial dollar fell 0.6%, closing at ARS 1,430 and ARS 1,481.4, respectively. Meanwhile, the BCRA purchased USD 132M in the FX market, accumulating purchases of USD 2,084M for the month and USD 9,239M year-to-date. Gross reserves fell USD 41M, closing at USD 47,807M.
THE MERVAL ADVANCED 5.0% IN PESOS AND 5.6% IN DOLLAR TERMS, closing at USD 2,074. Gains were broad-based across all sectors, with energy, communications, and banks leading the way. On the local board, Telecom Argentina (19.9%), Banco Supervielle (10.3%), and Sociedad Comercial del Plata (9.0%) topped the leaderboard. Among NYSE-listed stocks, the average rose 4.0%, with Telecom Argentina (9.7%), Grupo Supervielle (9.2%), and Edenor (7.4%) as the top gainers, while Vista Energy (-1.0%) lagged.
THE TREASURY AWARDED ARS 12.57 TRILLION AGAINST ARS 11.0 TRILLION IN MATURITIES, achieving a rollover rate of 114%. The bulk of the placement was concentrated in fixed-rate instruments—which accounted for roughly 41% of the total—followed by TAMAR (30%), CER (15%), and dollar-linked (14%). Notably, this auction did not include Dual instruments, which had featured in recent auctions. Regarding accepted rates, the Lecap S15S6 was awarded in line with the curve, with no premium over the secondary market. Slight premiums were observed in CER and TAMAR instruments, while the Treasury offered a more significant premium on dollar-linked securities. The AO27 and AO28 were placed at their maximum allowed amounts, with the AO27 paying the maximum YTM of 5.12% and the AO28 in line with the secondary market.
