Nov. 2 (Bloomberg) -- Peru’s sol-denominated bonds fell, pushing up yields to a one-week high, amid concern about a disorderly Greek default after the country’s Prime Minister George Papandreou announced a referendum on Europe’s rescue package.
The yield on the nation’s benchmark 7.84 percent sol- denominated bond due August 2020 rose two basis points, or 0.02 percentage point, to 5.67 percent at 12:37 p.m. Lima time, according to prices compiled by Bloomberg.
European leaders seeking to contain the region’s debt crisis summoned Papandreou to emergency talks in Cannes, France, today to tell him there is no alternative to budget cuts. The Greek government yesterday backed Papandreou’s proposal for a parliamentary confidence vote and his desire to seek public approval of a rescue package European leaders announced Oct. 27.
“Everything is trading off of what’s going on in the euro zone,” said Bret Rosen, a Latin America debt strategist at Standard Chartered Bank in New York. “Investors are less focused on domestic developments in Peru.”
Peru’s sol was little changed at 2.7108 per U.S. dollar, from 2.71 yesterday.
--Editors: Glenn J. Kalinoski, Richard Richtmyer
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