Peruvian bonds rose, pushing yields down the most in four weeks, on speculation Europe’s fiscal crisis may ease after polls showed Greek voters supported politicians in favor of the nation’s bailout.
The yield on the nation’s benchmark 7.84 percent sol- denominated bond due in August 2020 dropped eight basis points, or 0.08 percentage point, to 5.26 percent at 2:14 p.m. in Lima, according to prices compiled by Bloomberg. It was the biggest decrease on a closing basis since May 3. The price rose 0.53 centimo to 116.91 centimos per sol.
“Markets are more hopeful because of Greece,” said Dirk Willer, head of Latin America local markets strategy at Citigroup Inc. in New York. “The market isn’t expecting Greece to be out of the euro before year-end.”
Greece’s New Democracy party, which supports international bailout agreements, placed first in all six opinion polls published on May 26 as campaigning continued for the general election June 17.
The sol weakened 0.1 percent to 2.7 per U.S. dollar, according to Deutsche Bank AG’s local unit.
Peru’s central bank sold $115 million in the spot market today to stem declines in the sol, paying an average 2.7013 soles per U.S. dollar, according to the bank’s website.
The central bank sold dollars on May 25 for the first time in seven months, dipping into a record $58 billion of international reserves as foreign investors sold local currency on concern the euro zone’s debt crisis is getting worse.
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