Colombia, Venezuela, Peru:
Latin America Bond, Currency Preview
By Adriana Brasileiro
Tuesday, September 4, 2007
Sept. 4 (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 session.
Brazil: Brazil's industrial output probably rose 7.5 percent during the 12 months through July, accelerating from June's 6.6 percent advance, according to the median forecast of 27 economists surveyed by Bloomberg News. It would be the biggest gain in 31 months as manufacturers ramped up investment in machinery and equipment to meet rising consumer demand. The report will be released at 8:30 a.m. New York time.
The yield on the zero-coupon, real-denominated bond due in January 2008 fell 4 basis points, or 0.04 percentage point, to 11.19 percent, according to Banco UBS Pactual SA. The real rose 0.4 percent to 1.9540 per dollar.
Colombia: The consumer price index fell 0.13 percent last month after a 0.17 percent increase in July, according to a Sept. 1 government report. It was the first time prices fell since October. A Bloomberg News survey of 21 analysts forecast a median increase of 0.1 percent. Annual inflation in August was 5.22 percent, above the central bank's 3.5 percent to 4.5 percent target this year.
The yield on Colombia's benchmark 11 percent bond due July 2020 fell 4 basis points to 10.46 percent, according to Colombia's stock exchange. The peso on Aug. 31 gained 0.3 percent to 2,166 per dollar, according to the Colombian foreign-exchange electronic transactions system, known as SET-FX.
Transactions in the local currency yesterday operated in the so-called next-day market, meaning payment and delivery are made the following day, since U.S. markets were closed due to the Labor Day holiday.
Mexico: The government expects to raise 3.1 billion pesos ($281.1 million) in a sale of three-year bonds today. Mexico also plans to sell 15.9 billion pesos of Treasury bills at a local debt auction. The central bank is scheduled to disclose the results of the auction at 2:30 p.m. New York time.
Annual inflation will be 3.65 percent in 2007, according to the average estimate of 34 economists surveyed by Mexico's central bank from Aug. 27 to Aug. 30. That compares to an inflation forecast of 3.58 percent last month, the bank said in the monthly survey published yesterday.
Mexico's economy will expand 3.03 percent in 2007, the survey shows. In the survey published last month, economists forecast Mexico would expand 3.06 percent in 2007.
The yield on Mexico's 7.25 percent peso-denominated bond due in December 2016 fell 4 basis point to 7.77 percent, according to Santander Central Hispano SA.
The peso gained 0.1 percent to 11.0163 per dollar.
Peru: International reserves rose $735 million from a month ago to a record $24.1 billion through Aug. 27, the central bank said.
Reserves rose after banks deposited $579 million and the central bank bought $135 million on the exchange market, the bank said in an Aug. 31 report. Reserves have risen by $7 billion so far this year.
The yield on Peru's 8.6 percent bond maturing in August 2017 fell 2 basis points to 6.59 percent, according to Citigroup Inc.'s local unit.
The new sol was little changed at 3.162 per dollar.
Venezuela: Venezuela, which last month canceled a sale of $500 million of bonds it bought from Argentina, plans to sell the securities this month and change the terms of the sale, Finance Minister Rodrigo Cabezas said on Aug. 31, without saying how the government would change the terms.
The yield on the 6.25 percent, dollar-linked bonds due April 2017, known as a TICC, rose 7 basis points, or 0.07 percentage point, to 6.49 percent, according to Valores Santander Casa de Bolsa. The price, which moves inversely to the yield, fell 0.55 cent to 98.25 cents on the dollar.
The bolivar strengthened 2.1 percent to 4,750 bolivars per U.S. dollar in the unregulated, parallel market, from 4,850 on Aug. 31, traders said. The bolivar declined to a record low of 4,950 last week and has fallen 28 percent this year.
To contact the reporter on this story: Adriana Brasileiro in Rio de Janeiro at abrasileiro@bloomberg.net
