Bloomberg News

Chile Central Bank Sells 10-Year Peso Bonds at 4.97% Yield

October 06, 2011

(Adds yield history in first, second paragraphs.)

Oct. 6 (Bloomberg) -- Chile’s central bank sold $38 million of 10-year bonds denominated in pesos at a yield of 4.97 percent, the first time it has paid less than 5 percent since at least July 2004.

The bank also sold $84 million of inflation-linked 10-year bonds at a yield of 2.24 percent, the lowest since February 2009. The inflation-linked bond sale had been rescheduled after an auction on Sept. 20 was declared void.

Demand for the inflation-linked bonds totaled more than twice the amount offered, while demand for the fixed-rate bonds was more than three times the amount offered.

Banks bought 45 percent of the fixed-rate peso bonds and 20 percent of the inflation-linked bonds, the central bank said. Pension funds and others took the rest.

--Editors: Brendan Walsh, Marie-France Han

To contact the reporter on this story: Sebastian Boyd in Santiago at sboyd9@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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