Economic reports
Argentina, Brazil, Colombia, Peru: Local Bond, Currency Preview
By Lydia Thew
Monday, October 22, 2007
(Bloomberg) -- The following events and economic reports may influence trading in Latin American local bonds and currencies today. Yields and exchange rates are as of Oct. 19.
Argentina: Industrial production probably rose 6.9 percent in September from a year earlier, compared with 9.7 percent in August, according to the median forecast of eight economists surveyed by Bloomberg. The National Statistics Institute is scheduled to release the data at 3 p.m. New York time.
The yield on Argentina's 5.83 percent inflation-linked peso note due in December 2033 rose 23 basis points, or 0.23 percentage point, to 8.08 percent, according to Citigroup Inc.'s unit in Argentina.
Argentina's peso was little changed at 3.1625 pesos per dollar.
Brazil: Foreign direct investment probably fell to $1.5 billion in September from $2.04 billion the prior month, according to the median forecast of 13 economists surveyed by Bloomberg News. Brazil's current account surplus probably narrowed to $1.087 billion in September from $1.354 billion the previous period, according to the median forecast of 19 economists Bloomberg surveyed.
The central bank is scheduled to release the data at 8:30 a.m. New York time.
The yield on the government's zero-coupon, real-denominated bonds due in January 2008 was little changed at 11.15 percent, according to Banco UBS Pactual SA.
The real fell 1 percent to 1.8035 per dollar.
Colombia: Industrial production probably rose 11.03 percent in August from a year ago, compared with 12.35 percent in the prior month, according to the median forecast of nine economists surveyed by Bloomberg.
Retail sales probably grew 7.49 percent in August from a year earlier, compared with 6.51 percent the previous month, according to the median forecast of 10 economists surveyed by Bloomberg News.
The yield on Colombia's benchmark 11 percent bond due July 2020 rose 2 basis points to 10.19 percent, according to the central bank.
The peso fell 0.3 percent to 2002.1 per dollar.
Peru: The government plans to increase the proportion of the country's debt denominated in the local currency to 40 percent of total debt outstanding by the end of the year, from 31 percent now, Finance Minister Luis Carranza said Oct. 19.
DBRS, a Toronto-based ratings company, assigned Peru's sovereign debt an investment grade rating Oct. 19, citing the country's sustained economic growth and low debt-service requirements.
The yield on Peru's 8.6 percent bond due August 2017 was little changed at 6.33 percent, according to Citibank Peru.
The sol fell almost 0.1 percent to 3.0215 per dollar.
To contact the reporter on this story: Lydia Thew in New York at lthew@bloomberg.net
