*ADCAP SECURITIES JUNE 04 CLOSING COMMENTS:* • Not much happened today in the equity market externally, but in the bond market, expectations for a Fed rate cut increased. The market is now pricing in a potential cut in September, and another one before year end. That pushed Treasuries significantly higher—especially the 30-year, which had been lagging; it rose a point and a half, while the 10-year was up three-quarters of a point. The 10-year yield closed at 4.35%, and the 30-year at 4.88%. • That led to strong demand across most emerging market bonds—except in Argentina, where bonds closed lower. The day started slightly positive with some trades, like the ARGENT 2030 at $78.85 and the 2035 at $67.80, then moved to unchanged, and closed at the lows of the day: the 2030 at $78.40 and the 2035 at $67. So, Argentina underperformed the global trend and ended offered. • On the Boprea side, they finished flat, effectively outperforming the sovereigns with little trading and no change in price. • As for the new Bonte 29.5% 2030, it was actively traded today between ARS 108.25 and ARS 108.50, and there were some trades up to a point higher, with the last print around ARS 109. • In the provincial segment, we saw a pullback in BUENOS bonds, which had last traded at $72.5 yesterday and was trading at $72 today. There was some demand for PDCAR 2025, while some investors looked to exit PDCAR 2029. We also saw some demand for BUEAIR 27 around par and a half, likely looking to reinvest the recent 33% amortization paid. • On the corporate side, the new 7-year VISTA bond at 8.5% came out. It traded a bit in the grey market and last printed 25 cents above reoffer. The existing VISTA 2035 corrected, closing at $95.75, half a point below yesterday's close. At that level, the VISTA 2035s are yielding 15 bps inside the 2033s, which suggests either the 2035 is expensive or the new 2033 is cheap. Assuming the 2033 is cheap, it could easily rise by a full point. As for YPF’s curve, even though Vista (also oil and gas) came out with a new bond, we saw better buyers across YPFs, with many trades in the $99 handle on the 2034s. The 47s, on the other hand, continue to see selling pressure and are now trading 10 bps wider than the 2034s. We also saw retail flow in PLUSPE and TECPET, and some profit-taking in TECOAR 2033 after a 3-point rally. • Equities were decimated, which were down between 5% and 7%. The Merval plunged 4.8% in USD terms on Tuesday, closing at $1,776, as weakness in financials and energy stocks deepened amid rising uncertainty. Despite stable fundamentals in some sectors, persistent selling pressure and shifting positioning drove sharp losses across the board. • The FX hovered around similar levels all day, between ARS 1195 and ARS 1197 per dollar. • Negative day for peso bonds, with fixed-rate and inflation-linked bonds down an average of 0.1%, and dollar-linked bonds up an average of 0.1%. • Dollars had a quiet trading session, with slight increases of 0.2% along the dollar futures curve, while the official dollar showed virtually no change. On the financial side, the CCL and MEP posted more marked increases of 0.4% and 0.3%, respectively. • Peso bonds closed with slight declines. The session opened with subdued activity, and as the day progressed, the tone turned more negative, with the fixed-rate curve showing losses from the August 2025 maturity onward. The CER curve closed with declines across the board. It’s worth noting that today marked the debut of the BONTE 2030, which stood out for its high trading volume—surpassing that of the shortest fixed-rate bond on the curve (S18J5).