Bloomberg News

Colombia Yields Rise After Inflation Slows Less Than Forecast

January 06, 2012

Jan. 6 (Bloomberg) -- Colombia’s peso bonds fell, pushing yields on benchmark securities up the most in two weeks, after a government report showed inflation slowed less than forecast at the end of 2011.

The yield on the nation’s 10 percent bonds due in July 2024 rose five basis points, or 0.05 percentage point, to 7.54 percent at 8:36 a.m. in Bogota, according to the stock exchange. That’s the biggest increase since Dec. 22. The price on the peso bonds, known as TES, fell 0.445 centavo to 119.428 centavos. The rose 0.1 percent to 1,879 per U.S. dollar.

Annual inflation slowed to 3.73 percent in December from 3.96 percent in November, the national statistics agency said in a report late yesterday. Economists forecast inflation would slow to 3.60 percent, according to the median estimate of 23 analysts surveyed by Bloomberg. The central bank’s inflation target in 2011 and 2012 is 2 percent to 4 percent.

Consumer prices rose 0.42 percent in December, more than the 0.30 percent forecast by analysts surveyed by Bloomberg. Food, education and housing prices led the increase in consumer prices in 2011, according to the government report.

The Colombian peso has jumped 3.1 percent this week, heading for its biggest weakly jump since the period ended Feb. 12, 2010.

--Editor: Brendan Walsh

To contact the reporter on this story: Andrea Jaramillo in Bogota at ajaramillo1@bloomberg.net

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


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