Peru’s Yields Rise as Signs of China, U.S. Slowdown Sap Demand

Peruvian dollar-denominated bonds fell as weak manufacturing activity in China and the U.S. curbed demand for the Andean nation’s securities.

The yield on the nation’s benchmark 6.55 percent bond due March 2037 climbed one basis point, or 0.01 percentage point, to 4.47 percent at 3:42 p.m. in Lima. The bond’s price fell 0.18 cent to 131 cents per dollar.

China’s non-manufacturing industries expanded in May at the slowest pace in more than a year as export orders declined, a report showed yesterday. Bookings at U.S. factories dropped 0.6 percent in April, the Commerce Department said today.

“External risks have clearly worsened,” said Siobhan Morden, the head of Latin America fixed income strategy at Jefferies Group Inc. in New York.

The sol was little changed at 2.7050 per U.S. dollar at today’s close, compared with 2.7055 on June 1, according to Deutsche Bank AG’s local unit.

The central bank didn’t buy or sell dollars in the spot market today.

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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