Peru Yield Falls to Record Low on U.S. Stimulus Speculation

Peru’s dollar-denominated bonds rose, pushing yields to a record low, amid speculation the Federal Reserve may take further measures to spur growth, boosting demand for higher-yielding, emerging-market debt.

The yield on the nation’s benchmark 6.55 percent bond due in March 2037 declined one basis point, or 0.01 percentage point, to 4.30 percent at 12:32 p.m. in Lima. The bond’s price rose 0.25 cent to 134 cents per dollar.

“Peru is still a very solid and relatively low-risk investment and its bonds have a higher yield than U.S. Treasuries,” said Juan Pablo Fuentes, a Latin America economist at Moody’s Analytics Inc. in West Chester, Pennsylvania. “Some people don’t think the situation in Europe is going to get worse and are ready to invest in emerging markets.”

U.S. stocks rose as investors increased bets Fed policy makers meeting next week will take additional steps to spur growth after initial claims for jobless benefits unexpectedly increased last week.

Peru’s sol rose 0.3 percent to 2.6685 per U.S. dollar, according to Deutsche Bank AG’s local unit.

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