Bloomberg News

Peru Yields Rise to One-Week High as Spain Crisis Cuts Demand

June 12, 2012

Peru’s sol-denominated bonds fell, pushing up yields to their highest in a week, as skepticism that Spain’s bailout plan will ease the euro zone’s debt crisis curbed demand for the nation’s financial assets.

The yield on the benchmark 7.84 percent bond due in August 2020 rose one basis point, or 0.01 percentage point, to 5.19 percent at 1:45 p.m. in Lima, according to data compiled by Bloomberg. That was the highest level since June 5. The price decreased 0.09 centimo to 117.35 centimos per sol.

“We had a little bit of relief and then a lot of disappointment related to Spain,” said Enrique Alvarez, the head of Latin America fixed-income research at IdeaGlobal in New York.

Spain’s bond yields rose to a record today amid concern a 100 billion-euro ($125 billion) lifeline for the country’s banks won’t be enough to stabilize the economy.

The sol weakened almost 0.1 percent to 2.6835 per U.S. dollar, from 2.6815 yesterday, according to Deutsche Bank AG’s local unit.

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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