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THE SECRETARIAT OF FINANCE ANNOUNCED THAT IN YESTERDAY’S AUCTION IT AWARDED ARS 9.02 TRILLION, ACHIEVING A 123.4% ROLLOVER OF ITS MATURITIES and thereby absorbing ARS 1.7 trillion from the system. Demand was primarily concentrated in fixed-rate instruments, which accounted for 76.9% of the total amount allocated, particularly the April LECAP (S17A6), which captured 55.8%, reflecting limited appetite for extending duration. The elevated rollover was achieved even with rates broadly in line with the secondary market and below those validated in the previous auction (33.5% NAR vs. 35.4% NAR previously).
AHEAD OF THE AUCTION, PESO-DENOMINATED DEBT TRADED WITH A WEAK TONE, WITH DOLLAR-LINKED BONDS ONCE AGAIN THE MOST AFFECTED, FALLING 0.3%. Meanwhile, CER-linked bonds slipped 0.1% and dual bonds were flat, while the fixed-rate curve edged up 0.1%. This performance came despite a slight easing in overnight rates: the one-day caución and repo closed around 22–23% TNA, while the Tamar rate stood at 31.4% TNA.
DOLLAR-DENOMINATED SOVEREIGN BONDS POSTED A POSITIVE PERFORMANCE, RISING 0.4%, led by Global bonds, which gained 0.6%, with increases of up to 1% in the GD46, while Bonares advanced 0.3%. As a result, the country risk closed at 506 bps. Meanwhile, Bopreal bonds fell 2.6%.
THE BCRA STEPPED UP FOREIGN-CURRENCY PURCHASES IN THE OFFICIAL MARKET, BUYING USD 214 M AND BRINGING NET PURCHASES TO USD 1,907 M SO FAR THIS YEAR. In this context, gross reserves increased by USD 75 M and closed at USD 45,307 M. These purchases were sustained even as the official exchange rate extended its decline, falling 0.1%. It closed at ARS 1,403.7, standing 12.7% below the top of the band. Financial dollar rates also eased, with the MEP down 0.3%, while the CCL was unchanged, closing at ARS 1,432 and ARS 1,477.7, respectively, and the spread widened to 3.2%.
THE MERVAL MOVED AGAINST THE GLOBAL EQUITY TREND, FALLING 1.6% IN PESOS AND 1.5% IN DOLLAR TERMS, CLOSING AT USD 2,040. The most affected sector was communications, followed by industry and banks. The biggest decliners were Telecom (-7.1%), IRSA (-4.1%), and BBVA (-3.1%). These losses were partially offset by gains in Transener (2.1%), TGN (1.7%), and Aluar (1.4%). Argentine stocks trading on Wall Street fell 0.8%, led by Telecom (-8.8%), Globant (-6.4%), and BBVA (-2.4%), while Bioceres (2.5%), Ternium (1.3%), and TGS (1.3%) posted the strongest gains.
