Brazil and Mexico: Latin American Bond and Currency Preview

The following events and economic reports may influence trading in Latin American local bonds and currencies today. Bond yields and exchange rates are from yesterday’s session.

Brazil: Prices measured by the IGP-DI increased 0.15 percent in November, reversing 0.04 percent deflation in October, according to a Bloomberg survey of 27 economists.

The Getulio Vargas Foundation will release the data at 5 a.m. New York time.

The real gained 0.3 percent to 1.7268 per U.S. dollar.

The yield on Brazil’s zero-coupon, real-denominated bond due in January 2011 fell five basis points, or 0.05 percentage point, to 10.40 percent, according to Bloomberg prices.

Other prices in Latin American markets:

Mexico: The peso strengthened 0.1 percent to 12.6578 per dollar.

The yield on Mexico’s 10 percent bond due December 2024 fell two basis points to 8.10 percent, according to Banco Santander SA.

Argentina: The peso rose 0.1 percent to 3.8041 per dollar.

The yield on the country’s inflation-linked peso bonds due in December 2033 fell nine basis points to 10.85 percent, according to Citigroup Inc.’s local unit.

Chile: The peso was little changed at 502.45 per dollar.

The yield for a basket of Chile’s 10-year peso bonds in inflation-linked currency units, called unidades de fomento, was unchanged at 3.33 percent, according to Bloomberg composite prices.

Colombia: The peso rose 0.1 percent to 2,005.49 per dollar.

The yield on Colombia’s 11 percent bonds due in July 2020 rose seven basis points to 8.16 percent.

Peru: The sol advanced 0.2 percent to 2.8620 per dollar.

The yield on Peru’s 8.6 percent bond maturing August 2017 was unchanged at 4.93 percent, according to Citigroup Inc.’s unit in Lima.