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Colombia Peso Bonds Yields Fall on Lower-Than-Forecast Inflation

Colombia’s peso bonds gained, pushing yields on benchmark securities to a record low, after a report showed inflation quickened less than analysts forecast last month.

The yield on the government’s 10 percent peso-denominated debt due in July 2024 fell two basis points, or 0.02 percentage point, to 7.03 percent, according to the central bank. That’s the lowest level on a closing basis since the bonds were issued in 2009. The price rose 0.187 centavo to 123.726 centavos per peso.

Consumer prices rose 0.14 percent in April, the national statistics agency said in a May 5 report, less than the 0.17 percent median estimate among 30 economists surveyed by Bloomberg. Annual inflation was 3.43 percent, within the central bank’s 2 percent to 4 percent target.

“Yields remain on a downward trend following the report, which for now adds to lower inflationary risks,” said William Florez, an analyst at Helm Bank SA (PFBHELMB)’s brokerage unit in Bogota.

Colombia’s peso rose, erasing earlier losses. 0.2 percent to 1,755 per U.S. dollar, from 1,758.70 on May 4. The peso has rallied 10.5 percent this year, the second-best performance after the Hungarian forint among all currencies tracked by Bloomberg.

To contact the reporter on this story: Andrea Jaramillo in Bogota at ajaramillo1@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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