Bloomberg News

Peru Yields Fall as German Parliament Approves Greek Bailout

February 27, 2012

Peruvian dollar bonds rose, pushing down yields the most in two weeks, as German lawmakers approved a second euro-region bailout for Greece, fueling demand for higher-yielding, emerging-market assets.

The yield on Peru’s benchmark 6.55 percent dollar- denominated bond due March 2037 fell four basis points, or 0.04 percentage point, to 4.74 percent at 12:43 p.m. in Lima. That’s the steepest decline since Feb. 13. The bond’s price rose 0.59 cent to 126.33 cents per dollar.

Germany’s lower house of parliament approved the rescue package worth 130 billion euros ($174 billion) as European leaders seek to stave off a collapse of the Greek economy. Germany is the biggest contributor to euro-area aid. Chancellor Angela Merkel said earlier that pushing Greece out of the euro would risk “incalculable” damage to the European Union and the global economy as she defied a backlash against the bailout.

“There is some negative feeling but the risk-on trade will remain in place,” said Alberto Bernal, head of fixed-income research at Bulltick Capital Markets in Miami. “We’re in a much better position than we were before.”

The yield on the nation’s benchmark 7.84 percent sol- denominated bond due August 2020 rose one basis point to 5.52 percent, according to prices compiled by Bloomberg. The security’s price fell 0.06 centimo to 115.45 centimos per sol.

To contact the reporter on this story: John Quigley in Lima at

To contact the editor responsible for this story: David Papadopoulos at

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