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Brazil and Colombia: Latin American Bond and Currency Preview
Bloomberg
June 25, 2009

By Valerie Rota

June 25 (Bloomberg) -- The following events and economic reports may influence trading in Latin American local bonds and currencies today. Bond yields and exchange rates are from the previous day's session.

Brazil: The unemployment rate rose to 9 percent in May from 8.9 percent the previous month, according to the median of 20 estimates in a Bloomberg survey. The national statistics agency is scheduled to release the report at 8 a.m. New York time.

The real rose 0.5 percent to 1.9690 per dollar.

The yield on the zero-coupon, real-denominated bond due in January 2010 fell two basis points, or 0.02 percentage point, to 8.87 percent, according to Banco Votorantim.

Colombia: The nation's gross domestic product declined 1.3 percent in the first quarter, after dropping 0.7 percent in the previous period, according to the median of 18 estimates in a Bloomberg survey of economists. The country's statistics agency is slated to publish the report today.

The peso fell 0.7 percent to 2,174.23 per dollar.

The yield on Colombia's benchmark 11 percent bonds due July 2020 fell six basis points to 9.48 percent, according to Colombia's stock exchange.

Other prices in Latin American markets:

Argentina: The peso was little changed at 3.79 per dollar.

The yield on the country's inflation-linked peso bonds due in December 2033 fell 30 basis points to 15.94 percent, according to Citigroup Inc.'s local unit.

Chile: The peso rose 0.4 percent to 532.10 per dollar.

The yield for a basket of Chilean 10-year peso bonds in inflation-linked currency units, called unidades de fomento, climbed seven basis points to 2.95 percent, according to Bloomberg composite prices.

Mexico: The peso gained 0.4 percent to 13.3017 per dollar.

The yield on Mexico's 10 percent bond due December 2024 fell three basis points to 8.6 percent, according to Banco Santander SA.

Peru: The sol was little changed at 3.0235 per dollar.

The yield on Peru's 8.6 percent bond maturing August 2017 was unchanged at 5.65 percent, according to Citigroup Inc.'s unit in Lima.

To contact the reporter on this story: Valerie Rota in Mexico City at vrota1@bloomberg.net.

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