Bloomberg News

Peru Yields Fall to Five-Month Low on Greek Bailout Optimism

February 13, 2012

Feb. 13 (Bloomberg) -- Peruvian bonds rose, pushing down yields to a five-month low, after Greek lawmakers approved austerity plans to secure a bailout, boosting investor appetite for higher-yielding, emerging-market assets.

The yield on the nation’s benchmark 7.84 percent sol- denominated bond due August 2020 fell two basis points, or 0.02 percentage point, to 5.58 percent, according to prices compiled by Bloomberg. That’s the lowest since Sept. 15. The security’s price rose 0.13 centimo to 115.08 centimos per sol.

Germany and the European Commission welcomed Greek parliamentary approval for spending cuts, suggesting euro finance chiefs will ratify a 130 billion-euro ($172 billion) rescue package for the country Feb. 15.

“People are more willing to buy local-currency debt now that a sudden and disorderly default” by Greece looks less likely, said Benito Berber, a strategist at Nomura Securities Inc. in New York. “Everything is looking very strong in domestic and external markets.”

The sol was little changed at 2.6850 per U.S. dollar, from 2.6855 on Feb. 10.

The central bank didn’t buy dollars in the foreign exchange market today, it said on its website.

--Editors: Brendan Walsh, Glenn J. Kalinoski

To contact the reporter on this story: John Quigley in Lima at jquigley8@bloomberg.net

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


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