Colombia’s peso bonds rose, pushing yields to two-week low, on speculation inflation slowed last month because of cheaper food prices.
The yield on Colombia’s 10 percent bonds due in July 2024 fell four basis points, or 0.04 percentage point, to 7.54 percent, according to the stock exchange. That’s the lowest since Nov. 18. The bond’s price rose 0.370 centavo to 119.517 centavos per peso.
“People have been cutting their inflation forecasts because farmers have had to sell goods at lower prices as the rains affect their quality,” said Felipe Campos, the head analyst at brokerage Alianza Valores SA in Bogota.
Heavier-than-average rain, caused by the La Nina weather pattern, will last through the first quarter of next year, the government has said.
Consumer prices rose 0.19 in November, the same pace as the previous month, according to the median estimate of 28 economists surveyed by Bloomberg. The national statistics agency is set to publish its monthly inflation report today at 7 p.m. New York time.
The peso rose 0.3 percent to 1,935.55 per U.S. dollar, from 1,940.57 on Dec. 2.
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