Peru Yields Fall as U.S. Outlook, Greek Debt Swap Spurs Demand

Peruvian dollar bonds rose, pushing down yields the most in a week, as a report showed U.S. companies boosted hiring and more investors agreed to a Greek debt swap, fueling demand for higher-yielding, emerging-market assets.

The yield on the nation’s benchmark 6.55 percent dollar- denominated bond due March 2037 fell four basis points, or 0.04 percentage point, to 4.68 percent at 5:04 p.m. New York time. The bond’s price rose 0.61 cent to 127.44 cents per dollar.

U.S. companies added 216,000 workers last month, according to data based on payrolls from ADP Employer Services. Investors with holdings amounting to 58 percent of the Greek bonds eligible for the nation’s debt swap have so far indicated they will participate in the biggest-ever sovereign restructuring.

“There’s liquidity in global markets and investors are seeking riskier assets to get a better return,” said Manuel Aldave, the head of investments at Banco Internacional del Peru in Lima.

The sol was little changed at 2.6745 per U.S. dollar, from 2.6740 yesterday, according to Deutsche Bank AG’s local unit.

The central bank bought $107 million in the spot currency market today to stem gains in the sol. It paid an average 2.6734 soles per dollar, the bank said in a statement on its website.

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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