Latin American local bonds

Brazil, Colombia, Mexico, Venezuela: Bond, Currency Preview

By Lydia Thew

Wednesday, September 19, 2007

(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: Consumer prices as measured by the FIPE economics research institute probably rose 0.17 percent in the month to Sept. 15 after increasing a 0.07 percent increase in August. FIPE is scheduled to release the inflation report at 4 a.m. New York time.

The yield on the zero-coupon, real-denominated bonds due in January 2008 fell 3 basis points, or 0.03 percentage point, to 11.09 percent, according to Banco UBS Pactual SA. The real soared 2.2 percent to 1.8770 per dollar.

Colombia: Tax revenue rose 17 percent to 41.7 trillion pesos ($19.7 billion) in the first eight months of the year, compared with the year earlier period, the state tax agency said in a statement yesterday. Tax collection was 1.7 trillion pesos above the government's target for the period, the agency said.

The yield on Colombia's benchmark 11 percent bond due July 2020 fell 18 basis points to 10.15 percent, according to Colombia's stock exchange.

The peso rose 0.8 percent to 2,123.6 per dollar.

Mexico: The government's cost to borrow in pesos fell at a monthly local debt sale as a reduction in the Federal Reserve's benchmark lending rate lured investors to Mexico's higher- yielding securities.

Mexico yesterday sold 4.5 billion pesos ($408 million) of its bond due June 2012 to yield 7.77 percent, down from 7.81 percent in the sale last month. The government also raised about 2.12 billion pesos in a sale of 10-year inflation-linked bonds. Mexico sold the inflation securities to yield 3.63 percent, down from 3.65 percent in the last sale in July.

The yield on Mexico's 7.25 percent bond due December 2016 fell 4 basis points to 7.8 percent, according to Banco Santander Central Hispano SA.

Mexico's peso strengthened 1.3 percent to 10.9987 per dollar.

Venezuela: Venezuela sold 50 billion bolivars ($23 million) of 91-day bills to yield 9.44 percent, the central bank said in a statement.

The yield is down from 9.7 percent at last week's auction.

To contact the reporter on this story: Lydia Thew in New York at lthew@bloomberg.net .