ON WEDNESDAY, LOCAL ASSETS HAD A NEGATIVE SESSION. Dollar-denominated sovereigns fell and the country risk rose to 517 bps. In the ARS curves, performance was mixed, with gains in Lecap, CER, dollar-linked, and Dual bonds, while Bontes declined. The Treasury held its auction, rolling over 110% of maturities. Financial exchange rates rose, as did the official exchange rate. The BCRA purchased USD 185M in the official market and once again added to reserves.

THE TREASURY AWARDED ARS 10.71 TRILLION AGAINST MATURITIES OF ARS 9.71 TRILLION, achieving a rollover rate of 110%. For the Lecap S30S6 (Sep-26), it accepted a rate of 2.09% EMR, slightly above the secondary market level of around 2.00%. In CER instruments, TZXY7 was awarded at 1.54% IRR, and the new TZXS7 (Sep-27) at 5.04% IRREA, both above secondary market levels of 0.6% and 4.6%, respectively. In CER/TAMAR Dual bonds, the new instruments (Jun-28 and Jun-29) were placed at 4.0% and 6.19% IRR. In total, 41% of the placement was at fixed rate, while 59% went to inflation-linked and variable-rate instruments. In Hard Dollar, the Treasury reopened AO27 and AO28: the former was awarded at 5.12% IRR, above the 5.0% market level, while AO28 accepted a rate of 8.55% IRR, slightly above the secondary market level of 8.45%. A second round for AO27 and AO28 will be held today for up to an additional USD 100M in each tranche.

ARS-DENOMINATED DEBT HAD A MOSTLY POSITIVE SESSION. Lecap were broadly flat on average, with mid-duration instruments showing the best performance. CER bonds closed slightly lower on the index, with mixed moves across the curve: long-end instruments rose as much as 0.8%, while short-end bonds edged lower. Dollar-linked bonds gained 0.2%, in line with the move in the official exchange rate, and Dual bonds also closed higher by 0.1%. Bontes, on the other hand, declined 0.5%.

DOLLAR-DENOMINATED SOVEREIGN BONDS HAD A NEGATIVE SESSION. Bonares fell with the long end leading declines — AL41 dropped 1.6% — while the short end was virtually unchanged. Globals also closed in the red, with GD46 leading losses at -1.6% and GD30 declining 0.8%. As a result, the country risk rose to 517 bps. Bopreal bonds, meanwhile, advanced 0.8%.

THE OFFICIAL EXCHANGE RATE ADVANCED 0.2% TO ARS 1,389.21, with the BCRA purchasing USD 185M in the official market, bringing accumulated purchases to USD 721M and adding USD 346M to gross reserves. The MEP dollar rose 0.3% to ARS 1,429.5, while the financial exchange rate climbed 0.1% to ARS 1,484.9, keeping the spread with the official rate at 7%, while the MEP-financial spread narrowed to 3.8%.

THE MERVAL FELL 2.0% IN PESOS AND 2.5% IN DOLLARS, closing at USD 1,846. Losses of up to 3.9% were seen in Edenor, 3.4% in COME, and 2.9% in Transener. Telecom (2.3%), Aluar (2.0%), and VALO (2.0%) stood out as relative outperformers, partially cushioning the overall decline.