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.
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